The Bank of Russia announced a possible tightening of monetary policy due to the growth of recycling fees and higher housing and communal services tariffs.
The regulator believes that these measures are necessary to return inflation to the target level of 4% next year.
Annual inflation fell in September, but its further slowdown this year will be insignificant, according to a report from the Bank of Russia .
Inflation will begin to decline only when persistent inflation decreases and consumer demand cools.
The Central Bank noted that the expansion of the budget deficit, the growth of the recycling fee, and the increase in utility tariffs are pro-inflationary factors.
The planned changes have an impact on the general level of consumer prices.
The indexation of utility services on July 1, 2025 will be 11.9% instead of 5.7%.
By the end of 2025, the cumulative effect of increasing the recycling fee could grow to 0.6% on the consumer price index.
These factors may put significant pressure on the economy and require additional measures from the regulator.
Further tightening of monetary policy will help in the fight to curb inflation.
