In August, the price growth decelerated and even stopped in the majority of the world countries. However, in Russia, the inflation is escalating – it reached 0,3% within the half of September, according to the calculations of Rosstat (Federal State Statistics Service). Moreover, since the beginning of the year, the inflation attained 10%.

As for the other countries, on the contrary, the inflationary pressure is falling. Within the August, the prices of the USA fell by 0,1%, and the annual index (growth for 12 months) went to 5,4% down. In August, the prices of both Euro area and the overall European Union fell by 0,1%. It is the first price drop within the four months in the Eurozone. In August, the prices in Germany fell by 0,4%, in Greece – by 1,1%, in Slovenia – by 0,7%, in Spain and Poland – by 0,2%. The prices remained unchanged in Ireland and France.

In China, the prices are falling already within four successive months: in August, the annual index fell to 4,9% (the peak was in February – 8,7%), since it was backed by the severe restriction of consumer spending. Now, the government can increase the prices for the state-funded energy resources. According to the calculations of Morgan Stanley, in 2007, China’s budget allocated $27 billion for this funding.

The statistics of grain gathering published by the Russian Ministry of Agriculture confirmed the summer forecasts of the Ministry on the most bumper harvest in Russia over the 15 years: after 78% of land was handled, the growth exceeded the indices of the previous year by 20 million tons, and it is the highest index of the Russian export in 2007-2008. In the opinion of the market participants and analysts, the troubles related to the harvest will accelerate the implementation of the government’s plans on the strengthening of Russia’s presence at the grain market.

In August, the growth of industrial production grew to 4,7% as compared to 3,2% in July and the dire results of June – 0,9% of growth. The head of the Russian Ministry of Economy Elvira Nabiullina, presenting the preliminary August data within the meeting of the government, declared that “the indices rebound”. The economists surveyed consider that the industrial growth equals the indices of trend, and the latter is lower than the industrial growth’s indices of 2007.

Russia’s economy, despite the world financial crisis and deceleration of growth rates of some world-leading countries, is still accelerating. According to the latest data published by Rosstat (Federal State Statistics Service), in 1H, the country’s GDP grew by 8% in real money terms. Thus, the growth rates were lower in 2Q, than in 1Q – 7,5% against 8,5%.

According to the preliminary calculations of Rosstat published on September, 1, in August the inflation was 0,2%. So, the hopes of the deflation didn’t fulfill because of the prices’ rise for meat and meat products. There is little chances that the inflation will be lower than the last year’s level (11,9%). Moreover, the Central Bank announced already that it suspended the tightening of the monetary policy.

China, the core world’s exporter of steel, started to cut prices – only by 5% yet. Russia’s metallurgical companies will cut the prices for their products in 4Q as well. The majority of analysts and market participants consider that this drop is seasonal and the peak of prices for the metal falls to 2009. However, some experts suppose that the price maximum has been already crossed and the price drop for steel starts next year

In July, 2008 the Federal Tax Service set the absolute record on taxes collection – within a month they for the first time exceeded RUR 1,5 trillion without the VAT, as well as in April, 2008. So, the overall sum totals more than RUR 1 trillion. July’s core achievement is the acceleration of income taxes that totaled more than RUR 0,4 trillion. The economists can’t explain the reasons of such rapid growth of taxes payment because in summer, 2008 large M&A deals explaining surges of the income tax didn’t take place.

During August 2-8, the Central Bank’s (CB) international reserves grew $200 million only. The core reason is the euro weakening to the US $. According to some economists, the week before the start of the military operations in South Ossetia the market observed the foreign capital inflow of $4-5 billion. On August, 8, on the background of a panic at the currency market, it was replaced by the sharp outflow. Both economists and the CB’s representatives hope it ends soon.

In 1H 2008 the volume of foreign investments in Russia’s economy totaled $46,5 billion, and this figure is 22,9% less as compared to the analogical period of the previous year, as the Federal State Statistics Service (FSSS) reported

As of July, 1 nonresidents stake in an aggregate authorized capital of all Russia’s lending institutions totaled 26,8%, and increased by 1,7% since early year. Foreigners own 100% in 70 banks, and they own controlling interests in 26 more.