In May, prices rise by about 4% in annualised terms in almost half of Russian regions
In 59 of 85 Russian regions, prices grew less in May than in April, and they decreased in six regions. According to the Bank of Russia, in 41 regions, a seasonally adjusted increase in prices was close to 4% or less in annualised terms.
Food price growth slowed down in 49 regions. Fruit and vegetables, and sugar became markedly cheaper, and prices for pasta and cereals continued to decline.
Prices for non-food goods fell in 41 regions, most significantly – for household appliances and electronics.
The price growth rate declined most noticeably in services. Price dynamics slowed in 65 regions mainly due to transport services.
According to Rosstat, annual inflation in Russia decreased to 9.9% in May. In the vast majority of regions (in 66), annual inflation slowed down as well. The Bank of Russia will continue to decrease inflation, while maintaining high interest rates in the economy. We forecast that annual inflation will return to 4% in 2026.
More details on inflation in each Russian region are available in the information and analytical materials published on the Bank of Russia website.