Russian business price expectations continue to grow in Jan, highest since April 2022 - Central Bank

MOSCOW. Jan 26 (Interfax) - Russian business price expectations increased for the fourth month in a row in January, rising above the levels seen at the end of 2024 to their highest since April 2022, the Central Bank said in a commentary following a survey of enterprises.

"Businesses link the higher price expectations partly to the increase in the tax burden from January 2026," the CBR said.

Agricultural enterprises expect the smallest price increases, while retailers expect the largest.

"Elevated and unanchored business inflation expectations indicate that pro-inflationary risks persist. The Bank of Russia will reflect this factor in its monetary policy decisions," the regulator said.

When drafting business plans for 2026, companies assumed an average annual inflation rate of 9.3% compared to 10.6% in January 2025. As usual, the highest inflation rates were reported by companies in the trade, construction and service sectors.

Overheads rose more quickly in January across the economy as a whole and across all sectors. Companies again said the higher cost of fuel and lubricants, raw materials, utilities and logistics, as well as the VAT hike, were significant cost drivers.

Factory gate price growth accelerated in January both across the economy as a whole and in almost all sectors, except mining. In agriculture, selling prices declined for the fourth consecutive month.

The Central Bank surveyed 14,900 businesses between January 1 and 20.