According to the Southern Main Directorate of the Bank of Russia, annual North Caucasus Federal District inflation accelerated to 8.31% in November 2023. In October, inflation in the district amounted to 7.8%. The acceleration of inflation is explained by the transfer of producers' costs to food prices and the reduction in the supply of chicken eggs.

Core inflation in the North Caucasian Federal District rose from 6.2% to 6.64% last month. Annual growth in food prices in November amounted to 9.26% after 7.81% in October. Unfavorable episodic situations in several egg-supplying regions and the costs of poultry farms for preventive measures for veterinary protection became the drivers of the acceleration of annual growth in egg prices. "The growth of expenses of greenhouse farms due to the increase in electricity tariffs, the rise in the cost of packaging and consumables, as well as the increase in salaries of employees led to the growth of prices for fruits and vegetables," the report added.

"The annual growth of prices for non-food products in the regions of the North Caucasian Federal District decreased to 6.29% in November from 6.36% in October due to the expansion of supply of some goods. Due to the effect of temporary restrictions on exports in November, the gasoline supply on the domestic market increased. This led to a slowdown in the annual growth of motor fuel prices in general," the information noted.

"Expansion of flight programs in the North Caucasus was the main reason for the decrease in the annual growth rate of prices for services to 9.33% in November from 9.9% in October. Some air carriers opened additional flights for the New Year holidays and launched promotions with discounts, causing the annual growth of flight prices to slow down. Cellular operators expanded the network of towers in Dagestan with high-speed mobile communication. This made it possible to reduce tariffs on cellular communication. As a result, telecommunication services in the whole district went up in price year-on-year less than in October," the bank emphasized.