Inflation in Russia becomes a manageable instrument of state policy - intelligence

Inflationary processes in Russia are increasingly artificial and controlled, and are being used by the authorities to fill the budget, particularly to finance the war. This was reported by the Foreign Intelligence Service of Ukraine, according to UNN.

Details

The intelligence service notes that the formal explanation by the Russian Ministry of Economic Development for the price increase due to the VAT hike from 20% to 22% is unconvincing.

Businesses began raising prices last year, using the tax change as a pretext for new price increases.

It is noted that Russian regions experience inflationary pressure unevenly.

In the Far East, price increases are accelerated by logistical problems and imports from China and Southeast Asian countries – food and electricity prices are rising.

In Dagestan, tariff policy is added to logistical factors: tariffs will increase by almost 20% from October. In Chuvashia, some tariff items may increase by up to 33%.

Overall, across Russia, tariff increases range from 8% to 22%.

The service emphasizes that rising tariffs for businesses trigger a new wave of inflation and are passed on to consumers.

The main drivers of price increases remain state taxes, tariffs, and fees.

Thus, inflation is effectively turning into a hidden tax for Russian citizens to finance the war.

Recall

Last year, Russia's energy revenues decreased by 20% compared to 2024. This was due to increasing discounts on Russian oil and low world prices, which intensified pressure on the country's economy.