FX.co ★ Russia Inflation Softens for 4th Month

Russia's annual inflation rate continued to ease for the fourth consecutive month, reaching 8.8% in July 2025—the lowest since October of the prior year—down from 9.4% in June. This trend aligns with the Bank of Russia's projections, which anticipated a decrease in inflationary pressures that were prominent in the first half of the year. Nevertheless, the inflation rate still significantly surpassed the central bank's target of 4%. Notably, service-related price growth remained the most persistent, rising to 11.9%, reflecting its firm position in the Russian consumer basket. Food prices also experienced high inflation at 10.8%, whereas the inflation rate for non-food goods was relatively subdued at 4.1%. Core inflation stood at 8.5%. On a monthly basis, consumer prices increased by 0.6%.