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

The head of Russia’s central bank, Elvira Nabiullina, acknowledged that the country’s fuel crisis has driven up inflation.

“Current data indicate that rising fuel prices are starting to spread to prices across a wide range of goods and services,” Nabiullina said, adding that the central bank views the acceleration in price growth as “temporary.”

Nabiullina made the remarks at a press conference after Russia’s central bank announced a cut to its key interest rate, citing high inflation expectations, among other factors, as one reason for the move.

“As the situation on the fuel market stabilizes, inflation expectations could decline. That’s roughly how they reacted to the VAT increase: after a brief spike, expectations adjusted fairly quickly,” she said.

The fuel market situation is already “gradually normalizing,” Nabiullina said.

One of the main causes of the fuel crisis continuing in Russia has been Ukrainian drone strikes on the country’s largest oil refineries. Russian regions have introduced various restrictions on gasoline purchases, including limits on the amount of fuel per car per fill-up and QR codes. Amid the shortage, gas prices have risen. Russian authorities have repeatedly said in recent weeks that the situation on the fuel market will stabilize soon.