The number of Russian regions with double-digit inflation has halved

In June the number of Russian regions with double-digit inflation was 36. However their number is decreasing due to the regulator's strict policy - by the end of the first quarter, there were 57 regions with inflation above 10%, the press service of the Bank of Russia told Izvestia.

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Despite the fact that the number of regions has halved, this is still lower than in December, when there were 20 regions with double—digit price increases.

The main factors contributing to inflation include increased government spending, which leads to an increase in the money supply and increases inflationary pressure, said Marina Nikishova, Chief Economist at Zenit Bank. Russia's budget deficit in seven months has already exceeded the projected 3.8 trillion for the year — now it stands at 4.9 trillion.

In addition, a significant factor in inflation remains rising prices for basic consumer goods such as gasoline and medicines, which occupy a significant share in the consumer basket. Because of this, the population's inflation expectations are rising, said Denis Popov, managing expert at the PSB Center for Analytics and Expertise.

The main factor in slowing inflation was the tight monetary policy of the Central Bank. From October 2024 to June 2025, the regulator held the key rate at a record high of 21%. At the beginning of the summer, he began to gradually soften it, and on July 25 he lowered the rate to 18%. The Central Bank's harsh policy has also strengthened the ruble. According to the Central Bank, on August 8, the exchange rate was 79.3 rubles per dollar — since the beginning of the year, the national currency has strengthened by almost a quarter.

Read more in the exclusive Izvestia article:

Blow down the price: the number of Russian regions with double-digit inflation has halved