The Central Bank saw the risk of rising prices of imports due to the conflict in the Middle East
The Bank of Russia included the deterioration of external conditions in the list of pro-inflationary risks. If the geopolitical situation in the Middle East remains tense, the rise in prices for Russian imports may accelerate, the summary of the discussion of the key rate indicated.
The Bank of Russia included the deterioration of external conditions in the list of pro-inflationary risks. If the geopolitical situation in the Middle East remains tense, the rise in prices for Russian imports may accelerate, the summary of the discussion of the key rate indicated.
“A longer persistence of geopolitical tensions in the Middle East could increase inflationary pressures in the global economy and lead to a faster rise in prices for Russian imports,” the report said. The Central Bank notes that weak global economic growth may limit demand for Russian exports.
The US-Israeli military operation against Iran has led to restrictions on the movement of tankers through the Strait of Hormuz, through which about 20% of world fuel supplies passed. Before the beginning of the conflict, about 125 ships passed through the sea route daily, by mid-September their number had decreased to several dozen. Oil prices jumped from $63-67 per barrel to $90-100 per barrel.
