BOFIT Viikkokatsaus / BOFIT Weekly Review 2015/45
Regarding inflation risks, the CBR reminded of high inflation expectations and a possible weakening in the global economy. Low oil prices would drag down the ruble and translate to inflation. The CBR reiterated its assessment that there is also an inflation risk stemming from a possible relaxation of fiscal policy, e.g. if there would be a decision to revisit indexation of various social benefits paid out by the state. Presently, the 2016 index adjustments for pensions and many other social payments are on track to be lowered significantly from previous years.