FX.co ★ Russia to Weigh Gasoline Price Surge in Rate Cut Decisions

Russia's central bank is set to evaluate the recent increase in gasoline prices and its impact on inflationary expectations when considering potential rate cuts, according to Governor Elvira Nabiullina on Thursday. Gasoline prices, which have climbed 10.2% since the beginning of the year—surpassing general inflation—have been somewhat influenced by heightened Ukrainian attacks on Russian refineries. Nabiullina emphasized that gasoline is one of the "key" goods affecting inflation expectations, a crucial element in policy-making decisions. "The increase in gasoline prices could slow the reduction in inflation expectations. Unfortunately, they still remain at a high level," she stated. While characterizing the price hike as an "isolated" incident unlikely to exert prolonged inflationary pressure, Nabiullina mentioned that the central bank still has the scope to reduce rates further this year. The next policy meeting is scheduled for October 24.