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2002 V70 Turbo Wagon - Transmission Issues? V70-XC70 2002

I bought an '02 V70 wagon (Turbo, 115K miles, auto transmission) about 4 months ago. Love the car - it's our fourth inline-5 wagon, but our first turbo brick. Car has been running great; I bought it from someone I know, who has been meticulously taking care of it through the dealer. Lately, my wife has complained about some 'hesitation' when gently accelerating at higher speeds (40 - 50 mph). I test drove it yesterday, and it seems to downshift, then quickly shift back up again (unless you accelerate more aggressively). She's worried it's fuel-related, but I'm pretty sure it's the transmission. 'Any ideas?

Thanks,

Bernie






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