Russia records the largest jump in inflation in three years – the reason is communal services

Inflation in Russia from July 1 to July 7 was 0.79%, the highest weekly increase in the consumer price index since the spring of 2022. This was reported by Rosstat.

In the spring of 2022, prices in Russia rose rapidly due to panic amid the threat of an economic crisis and the collapse of the ruble amid a full-scale war in Ukraine.

Even during the period of accelerating inflation in late 2023 and early 2024, the country's weekly growth did not exceed 0.5%.

This year's price increase in Russia is due to an exceptional increase in utility tariffs. Last year, prices rose by 0.66% over the same period.

The government had planned that tariffs would increase by an average of 11.9%, but the regions were allowed to set their own prices, and many took advantage of this.

According to Rosstat, on average, utility tariffs have increased by 13-15% across the country.

At the same time, outside of utilities, prices in the Russian consumer market remained virtually unchanged. Among other goods and services, prices for medicines, gasoline (+0.27%), transportation and hotels are rising.

• The Russian State Duma is considering the possibility of returning to state regulation of purchase prices for basic food products.