The Central Bank of Russia predicted inflation at 6-7 percent by the end of 2026

Inflation in Russia by the end of 2026 will be six to seven percent. The level of price growth expected by the end of the year was announced by the Central Bank (CB) of Russia.

Following the meeting of the board of directors, the Central Bank decided to maintain the key rate at 14 percent per annum, interrupting the cycle of monetary policy easing (MPE), which had lasted since June 2025.

According to the Bank of Russia, steady price growth has accelerated to five to six percent on an annualized basis. The trend was explained by the influence of “temporary reductions in production capacity in certain industries.” As advisor to the head of the Central Bank Kirill Tremasov previously noted, the dynamics of consumer prices in Russia were affected by a shortage of gasoline caused by attacks by Ukrainian drones on large oil refineries. Tremasov noted that the regulator’s strict monetary policy cannot quickly absorb supply shocks. “Therefore, this year there was a deviation of inflation from the target,” stated the adviser to the head of the regulator.

“The Bank of Russia will make further decisions on the key rate depending on the dynamics of inflation and inflation expectations, as well as on the assessment of risks from internal and external conditions. In the base scenario, taking into account the current monetary policy, annual inflation will be six to seven percent in 2026, return to four percent in 2027 and will remain on target in the future,” the regulator is confident.