MOSCOW, July 25. /TASS/. Inflation expectations of households are fairly material because they influence the financial behavior of people, Central Bank chief Elvira Nabiullina said at the press conference after the regulator’s Board meeting.

"Inflation expectations are quite material. People make decisions what to do on the basis of their expectations of the price hike in the future: to spend, save if there is an opportunity, spend more or less," she said.

If the population does not believe in steady decline of inflation, this may fuel the rise in prices and reduce the space for lowering the key rate, Nabiullina added.