Construction materials have become cheaper in Bashkiria

The National Bank of the Republic of Bashkortostan reported that in January, annual inflation in Bashkiria increased by 0.3% compared to December—to 9.2%. In the Russian Federation as a whole, it is 9.9%.

Industrial goods inflation was 4.9%, down 0.4% from December. Demand for used foreign cars decreased, there were more materials for repair and construction, and clothing stores actively offered discounts to attract customers.

Inflation in the food sector is 11.2% compared to January 2024. Prices mainly increased for beef, pork, semi-finished meat, milk, fermented milk products, and confectionery. Analysts explain this by the growth in costs for raw materials, logistics, and wages for producers and processors of meat, milk, and confectionery enterprises. Services have become 12% more expensive over the year, mainly due to the growth of tariffs in housing and communal services (+10.4% year-on-year) and passenger transportation (+15.3%). Hairdressing and manicure services have become more expensive. Also contributing to this was the increase in state duties for civil registry offices and regional tariffs for notary services from the beginning of 2025.

"Today, when demand growth still outpaces supply in many ways, and prices are growing at an accelerated rate, the Bank of Russia maintains a high key rate. The more expensive loans and deposits are, the less people spend and the more they save. As a result, demand for goods and services is gradually decreasing, it is more difficult for sellers to raise prices, and inflation is slowing down," explained Almaz Gabdullin, an economist at the National Bank of Bashkortostan.

Author: Elina Akhmetova