The increase in consumption decelerated in July-August, with several macro-regions reporting signs of its decline. Demand for non-food products decreased, while higher deposit rates supported households' propensity to save.
Economic activity continued to expand; however, not all sectors recorded such a trend. Car manufacturers in the Volga Region and Central Russia increased output. New food enterprises were opened, and existing ones were upgraded in the South. Fertiliser manufacturers in the North-West ramped up investment activity and expanded their product ranges. The unfavorable environment in the global market adversely affected the output of non-ferrous metals in Siberia and ferrous metals in the Urals. The shortage of containers intended for exports limited the output of wood processing products in the Far East.
The monthly growth in consumer prices sped up to exceed 4% in annualised terms. The indexation of utility rates had the most significant impact on prices across all macro-regions.
More details are available in the September issue of Regional Economy: Commentaries by Bank of Russia Main Branches report. The special topics of this issue include regional budgets, businesses’ export opportunities, and steel manufacture.
Preview photo: Erik Romanenko / TASS