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Russia’s annual inflation rate climbed to 6% in January 2026, up from a more than two-year low of 5.6% in December. Although this was below market expectations of 6.4%, it marked the first acceleration in inflation since March of the previous year. The increase came amid the government’s VAT hike and signs of weakening capacity among major goods producers. Price growth was particularly strong in services (9.6%), while food inflation remained more contained at 5.9%, as the Bank of Russia noted that the higher VAT had not been fully passed on to consumers. On a monthly basis, consumer prices rose by 1.6%.
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