Russian costs up 9.5% in 2024, proceed to develop in 2025, statistical knowledge exhibits

MOSCOW (Reuters) – Russian shopper costs grew by 9.52% final 12 months in comparison with 7.42% in 2023, remaining statistical knowledge confirmed on Wednesday, making the 2024 inflation fee the fourth highest within the final 15 years.

Russian shopper value development exceeded 10% in 2022, the 12 months Russia launched its invasion of Ukraine, and throughout the financial disaster of 2014-15, following the annexation of Crimea.

Inflation has turn out to be a significant headache in Russia’s overheated financial system, the place development is fuelled by the state’s navy spending. The central financial institution maintains its benchmark rate of interest at 21%, the very best degree in 20 years, in an effort to cut back it.

Client costs grew by 0.67% within the first two weeks of 2025, which included an extended New Yr and Orthodox vacation, with development led by costs for liquor, meals, and public transportation tickets.

Costs for vodka elevated by 3.7%, whereas costs for cucumbers rose by 8.6%. Subway ticket costs grew by 8.2% following an annual hike firstly of the 12 months, adopted by will increase in costs for tickets on public buses and trams.

Regardless of general wage development, inflation is eroding the incomes of probably the most susceptible teams, with actual pensions falling by 0.7% from January to November 2024, in response to knowledge.