BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/12
The weak economy dampens inflationary pressures, and the CBR cited the fact that inflation had slowed from nearly 4 % m-o-m in January to just over 2 % in February. February prices, however, were still up 16.7 % y-o-y. The central bank further observed the price surge at the turn of the year was of a transient event that reflected the double-whammy of a large drop in the value of the ruble and bans on imported goods. The CBR said it expects 12-month inflation to slow by the end of this year to a range of 12–14 % and further to 5.5–7.5 % by the end of 2016. However, this scenario was subject to threats from hikes in regulated energy prices, relaxation of fiscal policy and acceleration in the rise of nominal wages.