VAT to spike inflation at the beginning of the year

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At the beginning of 2026, a temporary acceleration of inflation is expected. Its acceleration will be caused by an increase in VAT, Central Bank of Russia Governor Elvira Nabiullina announced at a press conference following the key interest rate decision.

However, the main impact on inflation from the decision to increase VAT is yet to come, Nabiullina noted.

"The increase in VAT has already affected inflation expectations, but we still need to assess what the effect will be," the head of the Central Bank stated.