economy

January 24, 2026

Russia reports major inflation drop in 2025

Russia’s annual inflation rate has fallen to 5.59%, the lowest level in five years, central bank data shows

Russia reports major inflation drop in 2025

TL;DR

  • Russia's annual inflation reached a five-year low in 2025, ending the year at 5.59%.
  • Price growth eased significantly, with non-food items increasing by an average of 3% and some becoming cheaper.
  • Services increased by 9.3% and food by 5.2%.
  • The Bank of Russia cut its key rate to 16% in December, the fifth cut since June.
  • The central bank aims to keep policy tight to reach its 4% inflation target.
  • Forecasts indicate further key rate cuts in 2026, with a projected range of 13-15%.

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