403
Sorry!!
Error! We're sorry, but the page you were looking for doesn't exist.
Russia's Inflation Reaches Lowest Level in Five Years
(MENAFN) Russia’s inflation slowed dramatically in 2025, reaching its lowest level in five years, according to figures released by the Bank of Russia (CBR). The data revealed a broad easing in consumer price growth across the economy.
Year-on-year inflation fell to 5.59% in December, down from 6.64% in November, the CBR reported. Over the year, non-food goods rose just 3% on average, while categories such as cars, electronics, footwear, and household appliances became cheaper. Services climbed 9.3% and food prices increased 5.2%. Seasonally adjusted, December’s monthly price growth translated to roughly 2.6% on an annualized basis. The central bank noted that underlying “sustainable” inflation indicators remained within the 4–6% range, close to its 4% target.
The CBR has been steadily reversing emergency measures imposed after Western sanctions and ruble volatility in 2024, when the key rate briefly surged to 21%. In December 2025, the regulator cut rates for the fifth time since June, lowering them by 50 basis points to 16%. Officials pledged to keep monetary policy “as tight as required” until inflation stabilizes at target levels.
Deputy CBR Governor Aleksey Zabotkin said Friday that the bank’s forecast anticipates further easing in 2026, with the average key rate projected between 13–15% under its October outlook. “Our forecast assumes further cuts [in the key rate] during 2026,” Zabotkin said. “But inflation is still above the target, not to mention inflation expectations, which have not yet fallen significantly. Therefore, it is premature to say that it is already time to return to neutral monetary policy.”
Analyst Vladimir Yeryomkin of RANEPA’s Institute of Applied Economic Research told Rossiyskaya Gazeta that the 2025 results show the CBR has largely succeeded in controlling inflation, creating space for cautious rate reductions this year. He emphasized that steering inflation toward the 4% target must remain the central priority.
Year-on-year inflation fell to 5.59% in December, down from 6.64% in November, the CBR reported. Over the year, non-food goods rose just 3% on average, while categories such as cars, electronics, footwear, and household appliances became cheaper. Services climbed 9.3% and food prices increased 5.2%. Seasonally adjusted, December’s monthly price growth translated to roughly 2.6% on an annualized basis. The central bank noted that underlying “sustainable” inflation indicators remained within the 4–6% range, close to its 4% target.
The CBR has been steadily reversing emergency measures imposed after Western sanctions and ruble volatility in 2024, when the key rate briefly surged to 21%. In December 2025, the regulator cut rates for the fifth time since June, lowering them by 50 basis points to 16%. Officials pledged to keep monetary policy “as tight as required” until inflation stabilizes at target levels.
Deputy CBR Governor Aleksey Zabotkin said Friday that the bank’s forecast anticipates further easing in 2026, with the average key rate projected between 13–15% under its October outlook. “Our forecast assumes further cuts [in the key rate] during 2026,” Zabotkin said. “But inflation is still above the target, not to mention inflation expectations, which have not yet fallen significantly. Therefore, it is premature to say that it is already time to return to neutral monetary policy.”
Analyst Vladimir Yeryomkin of RANEPA’s Institute of Applied Economic Research told Rossiyskaya Gazeta that the 2025 results show the CBR has largely succeeded in controlling inflation, creating space for cautious rate reductions this year. He emphasized that steering inflation toward the 4% target must remain the central priority.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research
More Story
Comments
No comment