Reduction in Inflation: Putin Predicts a Decrease to 6-7% by Year's End
Russian President Vladimir Putin announced during a meeting on economic issues that inflation has slowed to 8.8% by the end of July, marking the fourth consecutive month of inflation decrease. This rate is lower than the 10.3% year-on-year figure reported in March.
The reduction in inflation from March to July is significant, as noted by Putin. Inflation had dropped to 9.4% by the end of June, and further decreased to 8.8% by the end of July. This forecasted range is lower than previous forecasts made by Putin.
At the meeting, Putin also forecasted that by the end of the year, the dynamics of consumer prices could be within the 6-7% range. However, he did not specify any policies or measures that would be implemented to maintain the decreasing inflation trend.
The news was reported by TASS. The Bank of Russia has cut key interest rates recently to stimulate the economy amid easing inflationary pressures, expecting inflation to continue its downward trend while maintaining tight monetary conditions to reach their target of 4% inflation in 2026.
Historical data shows that inflation slowed over the year 2021, with the rate being around 5.2% to 5.7% according to data for that year. This indicates that inflation had already declined significantly from the higher early 2021 values.
The most recent data for 2025 shows inflation easing to 8.8% in July, and forecasts suggest a further decline to 6-7% by the end of 2025. The Bank of Russia has set a target of 4% inflation in 2026.
| Year/Period | Inflation Rate (%) | Notes | |----------------------|--------------------|----------------------------------| | March 2021 | 10.3 | High inflation in early 2021 | | Throughout 2021 | ~5.2 to 5.7 | Inflation slowed over the year[3]| | July 2025 | 8.8 | Most recent actual inflation rate[1][2]| | End of 2025 forecast | 6 to 7 | Expected decrease in inflation[4]| | 2026 target | 4 | Bank of Russia’s inflation goal[4]|
The reduction in inflation reflects improvements throughout the year and more recently in 2025. Inflation remains elevated but is forecasted to decline later in the year and beyond according to central bank projections. There is no direct forecast data specifically for the rest of 2021 in recent sources, but historical data indicate inflation was substantially lower by the end of 2021 compared to early 2021 levels. Current data and forecasts pertain mostly to 2025 and beyond.
The significant decrease in inflation from an initial 10.3% in March 2021 to 8.8% in July 2025 suggests positive trends in Russia's economy, particularly in the area of finance. Moving forward, the Bank of Russia aims to further decrease inflation in the rest of 2025 and reach their target of 4% in 2026, signifying potential growth in the business sector.
