For many Russians, higher utility bills are latest inflation shock
SPY•Russian utility bills have risen more than 50% since 2022 and more than 13% this year, adding to inflationary pressure. The increases have strained household budgets and raised concerns about inflation expectations as the central bank keeps its key rate at 14%.
1. Bills climb sharply
Russian utility bills have risen more than 50% since the start of the war in 2022 and more than 13% this year. In Moscow, teacher Polina Ibragimova said her bill has climbed about a quarter since the summer to 12,000 roubles, more than her usual salary advance.
2. Inflation pressures persist
The tariff increases were delayed until October 1, after parliamentary elections, and regional authorities later approved some of the steepest increases in years. The hikes add to inflationary pressures from higher petrol costs, while the central bank’s key interest rate stands at 14%. Governor Elvira Nabiullina warned that the increases would push up household inflation expectations, already at a two-year high.
3. Criticism and business costs
Communist Party leader Gennady Zyuganov complained to President Vladimir Putin about the increases, saying his own bill exceeded 30,000 roubles. Parliament speaker Vyacheslav Volodin called some regional increases excessive. Small businesses also face higher utility charges alongside tax increases.
