The newspaper Izvestia writes, citing a number of economists, that in August of this year, deflation in Russia could reach 0.3% because of a record harvest of cereals.
The publication reports: "Agroexpert assess the yield of 2017 as extremely high. About 120-130 million tons of grain will be harvested. This is noticeably better than the result of 2016 (121 million tons). Such forecasts led to a decline in market prices. In general, this will affect the level of inflation in the coming months ".
Analysts also expect inflation to fall closer to 3.6-3.8% by the end of this year.
As previously reported, the Central Bank does not see the risks to the economy due to the deflation in August.