Russia’s central bank chief Nabiullina acknowledges fuel crisis has driven up prices for ‘a wide range of goods and services’

Russia's central bank chief, Elvira Nabiullina, has acknowledged that the country's fuel crisis is driving inflation across the economy. Per Meduza, Nabiullina said rising fuel prices are spreading to a wide range of goods and services. The central bank has cut its key interest rate, citing high inflation expectations among other factors. Despite the mounting pressures, Nabiullina characterized the price acceleration as temporary, comparing it to inflation responses following previous economic shocks like a VAT increase. The fuel market situation is gradually normalizing, she said. Ukrainian drone strikes on Russia's largest oil refineries have been a major driver of the ongoing shortage. Russian regions have introduced various restrictions on gasoline purchases, including limits on the amount of fuel per fill-up and QR codes for transactions. Gas prices have risen significantly amid the supply constraints.

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