Inflation expectations saw a significant drop in September, according to the Central Bank, landing at 12.6%
Russia's Inflation Rate Decreases as Economy Shows Signs of Recovery
In a positive development for the Russian economy, inflation rates have been consistently decreasing over the past few months. According to a recent survey, residents of Russia estimated next year's inflation at 13.5%, a decrease from 14% in January 2025.
The decrease in inflation expectations was also observed among those with savings, with the estimated inflation rate dropping from 11.9% to 10.8%. The Bank of Russia, the country's central bank, predicts that inflation will further decrease to 6-7% by the end of 2025 and return to 4% in 2026.
The reduction in inflation expectations is not limited to just the estimates for next year. Already observed inflation among respondents without savings decreased to 16.5% in September from 17.4% in August, while among those with savings, it dropped from 14.2% to 12.3%.
The Bank of Russia's efforts to combat inflation are evident in its decision to reduce the key rate by 1 percentage point, from 18% to 17%, on September 12, 2025. The identity of the member of the Bank of Russia's Board who made this decision is not currently known.
Prime Minister Mikhail Mishustin has also acknowledged the progress, stating that inflation in Russia is gradually slowing down. He attributed this to Russian capacities and a number of decisions made by the government and the Bank of Russia.
The positive trend in inflation rates is also reflected in the overall economic landscape. The inflation indicator has reached a minimum annual level, the lowest since September 2024, at 12.5%.
However, the Bank of Russia has emphasised that the period of a tight monetary policy will continue as long as necessary to return inflation to its target of 4% in 2026. This is evident in the continuing decrease in the share of Russians with savings, which dropped from 33% to 32% in September, while the share of those without savings increased by 1%.
In conclusion, the Russian economy is showing signs of recovery, with inflation rates decreasing and the overall economic landscape improving. The Bank of Russia's efforts, along with the government's decisions, are playing a crucial role in this positive development.
