Finance
Russia's July inflation expectations steady at 13%, supporting case for rate cut
Published by Global Banking & Finance Review®
Posted on July 17, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on July 17, 2025
2 min readLast updated: January 22, 2026
Russia's inflation expectations held at 13% in July, indicating a likely interest rate cut as inflation slows.
MOSCOW (Reuters) -Inflation expectations among Russian households for the year ahead, an important gauge closely watched by the central bank, remained steady at 13% in July compared with June, the central bank said on Thursday.
The central bank will hold a rate-setting board meeting on July 25 and is widely expected to cut its key interest rate from the current 20% as inflation is slowing down. The latest inflationary expectations data is in favour of a cut.
Weekly inflation slowed to 0.02% in the latest week, compared to 0.79% in the previous week, according to statistical data released on July 16, while annualised inflation slowed to 9.34% from 9.45% one week earlier.
The central bank expects inflation to slow to between 7% and 8% in 2025 from 9.5% in 2024 and hit the target of 4% in 2026.
Inflationary expectations have been falling at the start of the year after the central bank hiked its key rate to 21%, the highest level since the early 2000s, but rose again in April and May.
(Reporting by Elena Fabrichnaya; Writing by Lucy Papachristou and Gleb Bryanski; Editing by Hugh Lawson and Sharon Singleton)
Inflation expectations among Russian households for the year ahead remained steady at 13% in July compared to June.
The central bank will hold a rate-setting board meeting on July 25, where a cut in the key interest rate is widely expected.
Weekly inflation slowed to 0.02% in the latest week, down from 0.79% in the previous week, indicating a decrease in inflationary pressure.
The central bank expects inflation to slow to between 7% and 8% in 2025, down from 9.5% in 2024, with a target of 4% in 2026.
Inflationary expectations have been falling since the start of the year after the central bank raised its key rate to 21%, but they rose again in April and May.
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