The particularities of the labour market in Russia are contributing to a steady decline in inflation, the report said. The potential increase in demand for labour due to economic growth won't lead to significant wage growth and therefore won't affect inflation. "This is due to the flexibility of the labour market, which is provided by migration," the report noted.
In 2015 and 2016, Russian salaries were attractive for migrants and if the domestic economy demonstrates sustainable growth, the influx of migrants is likely to continue, analysts concluded.
On Mar. 7, Bloomberg reported that Russia had emerged from its longest recession in the past 20 years.
In February 2017, the consumer price index rose by 0.2% compared to January. Annual inflation in February slowed down to 4.6%.
By the end of 2016, inflation in Russia was at 5.4%. The Bank of Russia hopes to slow inflation down to 4% by the end of 2017.