In May, 59 out of 85 Russian regions experienced a slower increase in prices compared to April, with six regions witnessing a decrease. The Bank of Russia reported that in 41 regions, the seasonally adjusted price increase was close to or less than 4% on an annualized basis.
Food prices showed a slowdown in growth across 49 regions. Notably, fruit, vegetables, and sugar became cheaper, while pasta and cereals continued their price decline.
Non-food goods saw price reductions in 41 regions, with household appliances and electronics experiencing the most significant drops.
The rate of price growth decreased most significantly in services. In 65 regions, the slowdown was primarily attributed to transport services.
According to Rosstat, Russia’s annual inflation fell to 9.9% in May. In the majority of regions (66), annual inflation also slowed down. The Bank of Russia plans to continue reducing inflation while maintaining high interest rates within the economy. “We forecast that annual inflation will return to 4% in 2026.”
Further details on regional inflation are available through information and analytical materials published on the Bank of Russia website.
