The Central Bank of Russia expects inflation at 6–7% in 2026 "due to the significant increase in fuel prices that has already occurred".
Previously, the regulator had expected it to slow to 4.5–5.5%.
Inflation expectations among households, businesses and financial market participants have risen. Their persistence at elevated levels may impede a sustained slowdown in inflation, the Bank of Russia said in a press release.
"The fuel situation falls into what is known as supply shocks," admitted Elvira Nabiullina, the head of the Bank of Russia, at a press conference on the same day.
Since mid-May, fuel price growth has accelerated, and in June several Russian regions faced shortages after Ukrainian strikes on oil refineries in Russia in response to the war launched by the Kremlin.
