Nabiullina: behavior of people with high inflationary expectations creates risks of rising prices 
expectations, said the head of the Central Bank Elvira Nabiullina during a speech in the State Duma, according to the website of the Central Bank.
Expectations really change people's behavior, she explained. “People are starting to spend as much as possible, and not save: buy now, even on credit (which is why we see how consumer credit is growing), until the price has risen even more. And such a change in the model can create serious risks of unwinding an inflationary spiral. When the supply still does not keep up, because there are logistical constraints, and so on, and so on, and the demand for money is growing. It does not translate into an increase in consumption, prices just rise, “Nabiullina said.
The only way to moderate high inflation expectations is to return inflation to the target, the head of the Central Bank said. People should have “a fairly long experience of life” with slowly rising prices, the head of the regulator believes.
At the same time, Nabiullina stressed that high inflation really destroys the well-being of citizens. Measures must be taken to prevent further price increases. Therefore, Nabiullina explained, the Bank of Russia at its last meeting raised the rate to 7.5 percent.
The Central Bank made a decision to raise the key rate to 7.5 percent at a meeting on October 22. The increase was the sixth in a row since March, when the rate was at the lowest level in the modern history of Russia – 4.25 percent per annum.