Key Facts

• Fuel prices in Russia jumped, with the exact extent of the increase not specified, but enough to bolster the case for central bank policy caution.
• Governor Elvira Nabiullina warned that lower output in the wake of Ukrainian strikes on refineries had become a new inflation risk, suggesting a direct link between the conflict and domestic economic pressures.
• The Ukrainian strikes on Russian refineries resulted in lower output, which in turn contributed to the spike in gasoline prices, illustrating the indirect economic consequences of the war.
• The economic toll of the war is being felt by Russians through higher fuel prices, which can have far-reaching implications for the country's economy and citizens.
• The central bank, led by Governor Nabiullina, is likely to take the new inflation risk into account when making policy decisions, potentially leading to a more cautious approach to monetary policy.