Inflation in Crimea exceeds 100%: war and taxes hit living standards

In the occupied Crimea, prices have risen, and Russia has raised the VAT rate to 22%, which affects the lives of the peninsula's residents. According to experts, high inflation, shortage of resources and the burden on local budgets due to the war make the economic situation extremely tense.

This was reported by Krym.Realii.

As noted in the publication, the consumer price index in Crimea in 2025 amounted to almost 107%, while transportation services, education, medicine and housing and communal services have risen significantly. Eskender Bariev , head of the Crimean Tatar Resource Center, noted that the pressure on the economy is increasing due to water shortages, high military spending, and insufficient funding for critical infrastructure.

Tourism, which the occupiers call the driver of the economy, also does not compensate for the deficits, as logistics and priority transportation for the military increase the cost of services. At the same time, Russian investments in Crimea are mainly directed to military infrastructure, and the shortage of personnel in the public utilities, healthcare, and education sectors worsens living standards.

Economist Ilya Neskhodovsky added that real inflation on the peninsula could be much higher than official data. The increase in VAT in Russia is used to further finance the war, which further affects prices in stores and reduces the purchasing power of Crimeans.

According to experts, without structural changes, the Crimean economy and the Russian budget will face serious difficulties in 2026, and the living standards of the peninsula's residents will continue to decline due to high prices, resource shortages and lack of social benefits.

In addition, a new stage of growth of tariffs for housing and communal services started in the occupied Crimea on January 1, 2026. The occupation authorities have envisaged a two-stage increase over the course of the year. The changes are already noticeable in January bills.

At the same time, only about 80% of the settlements in Crimea are gasified, and the lack of funds and the limited capacity of the pipeline from Krasnodar Krai prevent the completion of the connection of all districts.

Анна Літман