Russian inflation falls to about 6% in 2025

Russian annual inflation slowed to about 6% in 2025, down from 10% in 2024, Rosstat reported. The Central Bank of Russia kept rates near 20% for almost two years and began easing them in 2025 as price growth sagged.

Russian annual inflation slowed sharply in 2025, with Rosstat reporting price growth at about six percent for the year. This marked a drop from 10 percent in 2024 and was below what the central bank and some analysts had expected. The Central Bank of Russia maintained interest rates close to 20 percent for almost two years and began to ease them gradually during 2025. Wider fiscal and spending trends, including higher taxes to address a budget shortfall and rising military spending, have been part of the economic backdrop. Key facts: - Rosstat reported annual inflation at about 6% in 2025, down from 10% in 2024. - The Central Bank of Russia kept interest rates near 20% for almost two years and started gradual easing in 2025. - In November 2025, Rosstat said inflation fell to about 6% from 7% a month earlier, the steepest 12-month drop that year. - The central bank is targeting an inflation rate of 4% by 2027. - Rosstat said economic growth was close to zero in the third quarter of 2025. - The Kremlin raised taxes to address a budget gap of about $50 billion, and SIPRI estimated Russian military spending rose 3% in 2025 to around 7% of GDP. Summary: The marked slowdown in inflation allowed the central bank to begin easing interest rates while keeping a 4% inflation target for 2027. How quickly inflation will move toward that target and what further policy steps will follow is undetermined at this time.