Inflation in Russian regions: downward trend becomes more pronounced
In June, prices decreased or remained unchanged in 17 Russian regions and increased less notably than in May in 49 regions. The remaining regions reported a faster rise in prices.
Food prices were growing moderately, while fruit and vegetable prices were falling even more sharply than usual during the season. Eggs and butter continued to cheapen. Prices for sugar also dropped. Contrastingly, prices for tea, coffee, and cacao were rising more rapidly.
As for non-food goods, household appliances and electronics cheapened most notably. Demand for the said goods was decreasing primarily due to the decline in lending. A stronger ruble was another contributor to the above trend.
Services prices were rising fast but far less rapidly than in May. In particular, the increase in prices for personal and medical services as well as foreign travel was less pronounced.
Annual inflation dropped in 68 Russian regions in June. The Bank of Russia will continue to slow down the price growth, maintaining high interest rates. Annual inflation is forecast to return to 4% in 2026 and remain close to this level further on.
More details on inflation in each Russian region are available in the information and analytical materials published on the Bank of Russia website.