putin’s Economy: a Quarter of a Century of High Prices

Twenty-six years of putin’s rule have left russians with a wonderful legacy: what cost 100 rubles in the early 2000s, cost 1,033 rubles by the end of 2025. Total inflation over this period was about 930% – or a modest 9.4% annually, according to the country’s official statistics, which has long been known for painting a rosy picture.

However, the figures for the fuel market are not being painted – they are simply growing. As of March 2, A-92, A-95, and A-98 petrols reached their highest levels since the start of the full-scale war against Ukraine – 62.52, 67.94, and 91.74 rubles per liter, respectively. For comparison: on February 25, 2022, the same brands cost 47.60, 51.63, and 60.01 rubles.

The utility bills that russians received at the beginning of 2026 deserve special attention. Housing and utility tariffs jumped by 15.02% year-on-year, a record high in 16 years, since September 2010. mordovia saw an increase of 23.65%, kemerovo region – 22.9%, and perm region – 20.23%. It is noteworthy that no region had an increase of less than 10%.

Against this background, credit statistics look logical. At the end of 2025, russians’ bad debts exceeded 2.4 trillion rubles – an increase of one-third over the year. Their share in the retail loan portfolio of banks reached almost 7%, while the population’s total debt to financial institutions increased by 1.1 trillion and is approaching 38 trillion rubles.

The age dynamics of bankruptcies is particularly telling: while in 2023 the share of debtors under the age of 25 was 1.5%, in 2025 it jumped to 14%. This is an almost tenfold increase in two years – and this is a generation that has not even had time to have worked properly yet.

Healthcare has not become cheaper either. In 35 large cities with a population of over 500,000, prices for dental services have increased 27-fold. moscow added 48% – a visit that used to cost 1,352 rubles now costs 1,996; st. petersburg – plus 27%, novosibirsk – 37.6%. And this is the lower price segment, where most of the country’s dentists work.

Finally – a creative discovery from the tax authorities. Citizens who purchased a car on credit at a preferential rate in 2024 suddenly received tax assessments: the difference between the market and credit rates was classified by the tax authorities as a “material benefit” – subject to taxation. A state that cannot stop inflation will always find a way to take the rest.