Russians will face worsening inflation

According to the latest data, the level of inflation expectations of the Russian population increased from 12.6% to 13.3% last month.

Journalists draw attention to the fact that this growth was the largest since October 2024 — this is also indicated by reports from the Central Bank of the Russian Federation.

According to economist Dmytro Polyovog, this is a reaction "to the upcoming VAT increase, rising fuel prices, and increased waste collection."

Inflation expectations have "entered a race," driven by expectations of future inflationary shocks, say representatives of Russia's Gazprombank.

People with savings are most afraid of inflation. According to the latest data, their inflation expectations have increased from 11.1% to 12.3%.

For those who have no savings, expectations are even higher — at 13.7%.

The second increase in the VAT rate in 7 years (from 20 to 22%) will put Russia among the top countries in the world in terms of the level of this tax. Only some European countries have higher VAT rates, and outside the European region, Russia will share leadership with Uruguay.