Russian Central Bank Deputy: Middle East Crisis Net Inflationary for Energy Exporters

Bank of Russia Deputy Governor Alexei Zabotkin stated that while the Middle East crisis initially had a disinflationary effect on Russian prices, by Q2 this was neutralized, and the crisis is now 'net inflationary' for energy-exporting countries. The central bank kept its key rate at 14.0%, signaling persistent inflation concerns. This suggests that geopolitical tensions are feeding into global inflation dynamics, particularly for commodity exporters.