According to the central bank, Russian companies surveyed anticipate inflation reaching 10.7% in 2025, double the official forecast. Labor shortages were cited as a key factor hindering production expansion.

In a surprising move, the central bank maintained interest rates at 21% in December, defying market expectations of a hike to as high as 23%. Inflation soared to 9.52% in 2024, the fourth highest rate in the past 15 years, surpassing the bank's target of 4%.

A survey of nearly 15,000 companies revealed that they factored in an average annual inflation rate of 10.7% for their 2025 planning.

The report highlighted tight credit conditions in January, with the central bank planning to consider the high inflation expectations in its rate-setting meeting on Feb. 14.

Despite a consistent outlook for the next three months, companies' price change expectations stabilized in January after increasing for four consecutive months.

Additionally, the central bank noted that the business climate indicator experienced its lowest monthly level in January in two years.