MOSCOW, January 20. /TASS/. The Russian government is independently monitoring the situation with the rise in prices for goods and services in the country amid the VAT hike, Kremlin Spokesman Dmitry Peskov told reporters, adding that discussions on the issue will be held as needed.

"Regarding the rise in prices [for goods and services in the country in connection with the increase in VAT], of course, first and foremost, the government itself is monitoring those processes," he said when asked whether the president had discussed the rise in prices and the situation in the economy in general with the government.

"They [the economic process] are being analyzed, and discussions will take place as necessary," Peskov said.

As per the Economic Development Ministry, inflation in Russia reached 1.26% for the period from January 1 to 12, 2026, amid an increase in the basic VAT rate from 20% to 22% from January 1, 2026. Annual inflation as of January 12 was recorded at 6.27%, according to the ministry.