Russia’s post-election utility hikes push annual inflation above the central bank’s 2026 forecast range
Source: Russia's Economic Development Ministry
Weekly inflation in Russia rose to 0.96% in the week of September 29 to October 5, while annual inflation reached 7.1%, according to Rosstat, Russia’s statistics agency.
Higher housing and utility rates that took effect on October 1 — shortly after the State Duma elections — drove the increase. The Economic Development Ministry estimated that the rate hikes contributed 0.75 percentage points to weekly inflation.
The Bell reported that annual inflation of 7.1% exceeds both the upper end of the Bank of Russia’s 2026 forecast (6–7%) and the Economic Development Ministry’s forecast (6.8%).
Russia raised utility rates as scheduled on October 1. Housing and utility bills increased by an average of 9.9% nationwide. The increases varied by region, with the largest rise in Stavropol Krai (22%). Residential gas and electricity prices rose by nationwide averages of 9.6% and 11.3%, respectively.
On September 24, immediately after the State Duma elections, the Economic Development Ministry said utility rates in Russia would rise by an average of 11% beginning July 1, 2027. The ministry had previously forecast an 8.7% increase in housing and utility rates next year.
The ministry said it revised its forecasts because of rising inflation and larger projected increases in gas and electricity rates.
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