Inflation in Crimea accelerated the reduction in the supply of individual products and the growth of expenses for their production

The main reasons for the acceleration of annual inflation in Crimea to 10.8% in February after 10.2% in January were the reduction in the supply of certain products and an increase in the costs of manufacturers and suppliers.

Prices for drinking milk, cottage cheese and yogurt in the region in February rose in annual terms more than in January. The increase in the costs of raw materials, packaging, delivery and wages, manufacturers of dairy products transferred to the price of products.

The annual increase in prices and potatoes accelerated. The reason is to reduce the crop last year. This led to an earlier decrease in potato reserves, so it has become less in the republic’s markets.

Tomatoes in the Crimea have risen in price. Their proposal on the shelves decreased due to a decrease in local production.

The annual growth rates of prices for smartphones, detergents and cleaning agents accelerated, which is explained by the growth of costs of manufacturers of electronics and household chemicals, including logistics, labor remuneration to employees and imported production components.

On the other hand, the demand for supported foreign cars has decreased, so the prices of them in an annual comparison decreased more than in January.

An annual increase in travel prices in railway transport also slowed down. Last year, during this period, the cost of a ticket on long-distance trains increased more significantly than in February this year-then this was explained by increased demand, including due to the growth of tourist flow.

In the region and the country as a whole, annual inflation remains high. The possibilities of expanding production are still lagging behind internal demand. The lack of specialists in the labor market and the growth of costs limit the ability of companies to increase the production of goods and services. Including, taking into account these factors, the Bank of Russia at the next meeting of the board of directors on March 21, 2025 decided to maintain a key rate at the level of 21% per annum. According to the regulator, to achieve the goal of inflation, a long period of maintaining strict monetary conditions in the economy will be required. A decrease in annual inflation to 7–8% is predicted in 2025, and a return to 4% in 2026.