Annual inflation in Russia slowed in 74 regions in July, even after utility rates were increased. Food prices fell across most areas compared to June, with fruit, vegetables, eggs, and sugar becoming less expensive.
Non-food prices began to rise moderately in many regions following a period of decline. Despite this increase, the cost of cars, electrical goods, tools, and equipment continued to drop due to weak demand. The appreciation of the ruble over recent months also contributed to these lower prices.
Prices for services rose significantly because of higher utility rates. However, health resort and passenger transportation services became cheaper, and price increases for foreign travel stabilized.
According to the Bank of Russia: “The Bank of Russia’s monetary policy is aimed at bringing inflation back to 4% in 2026 and maintaining it close to this level further on.”
Additional information about inflation in each Russian region can be found on the analytical materials published on the Bank of Russia website (https://www.cbr.ru/eng/).
