Consumer prices in Russia experienced a surge of 0.8% according to Rosstat's latest reports.
In a recent economic update, it has been revealed that Russia is experiencing a significant increase in inflation rates, with the consumer price index rising by 3.64% since July 2024. This upward trend is reflected in various sectors, including consumer goods, utilities, and transportation.
According to the Bank of Russia's forecast as of mid-2025, the projected inflation rate for Russia by the end of 2025 is expected to be in the range of 7-8%, a moderation from earlier in the year but still above the Central Bank's long-term target of 4%. For the average inflation rate for the entire year 2025, reports indicate it will remain elevated, with an annual average inflation around 9.4% as of May 2025.
One of the most affected sectors is consumer goods. The price of televisions has increased by 0.5%, while shampoos, smartphones, and gasoline have seen a rise of 0.6%, 0.7%, and 0.3% respectively. In contrast, the cost of men's t-shirts and children's jeans has decreased by 0.1% and 0.3% respectively. However, prices for several non-food items have increased, including some medications, baby diapers, household soap, toothpaste, matches, dry pet food, and toilet paper.
Utilities have also seen a rise in prices. On average across Russia, tariffs for cold water supply, water disposal, and gas have increased by 14.9%, 14.6%, and 13.5% respectively. Tariffs for electricity and hot water supply and heating have also risen by 13.0% and 13.8% respectively.
In the transportation sector, fares in trams, city buses, and trolleybuses have increased by 0.3%, 0.2%, and 0.1% respectively. Interestingly, the cost of foreign-branded lightweight cars has decreased by 1.5%, while the price of electric vacuum cleaners has increased by an unspecified amount.
Elvira Nabiullina, the head of the Central Bank, stated that inflation should return to the level of 4% in 2026. Mikhail Vasilyev, chief analyst of Sovcombank, predicted that annual inflation will slow down to 7.2% by the end of the year in February. Despite these predictions, the current inflation rate is expected to remain significantly above the Central Bank’s 4% target both by year-end and on average for the year.
In other sectors, the average cost of staying in three-star hotels has increased by 0.5%, in two-, four-, and five-star hotels - by 0.2%, in hostels - by 0.1%. The price of adult and children's sneakers has decreased by 0.5% and 0.2% respectively, while the price of women's stockings has increased by 0.2%. The price of filtered cigarettes has increased by 0.1%, but the average cost of vouchers in rest homes and sanatoriums has decreased by 1.1%, in sанатории - by 0.1%, as well as the cost of staying in one-star hotels or motels.
The cost of diesel fuel has remained almost unchanged, offering a glimmer of stability amidst the inflationary pressures. However, the overall picture suggests that Russia is grappling with persistent price pressures from factors such as fiscal stimulus and some food price increases.
As the year progresses, it will be interesting to see how these trends evolve and whether the predictions of a slowdown in inflation come to fruition.
Businesses across various sectors have been impacted by Russia's inflation surge, with the Bank of Russia forecasting a projected inflation rate of 7-8% by the end of 2025. In the finance realm, consumer goods have seen a rise in prices for items like televisions, smartphones, and gasoline, while utilities have witnessed a significant increase in tariffs for water, gas, electricity, and heating.
