Monetary policy remained consistent with the inflation-targeting regime, and is moving from moderately tight to neutral. Moderately tight monetary and fiscal policies, in combination with a favorable external environment and some one- off factors, let the Central Bank of Russia (CBR) to reach a record-low level of CPI inflation in 2017. CBR continued its gradual approach to monetary easing, moving from a moderately tight policy to a neutral one. Annual inflation now stands at a record-low level, even below the CBR’s target of 4 percent, while inflation expectations, though trending downward, remain elevated (Figure 5a). However, pro-inflationary factors are on the rise, as discussed later in the outlook section. Russia Economic Report 39

In 2017, the export value of goods in all categories – except for energy goods, metals and wheat, other important commodities exported by Russia – increased by 17%, y/y. Export value of tradable services such as ICT and business services increased by 21.6%, y/y and 7.8%, y/y respectively.

While this is a positive development, the share of oil and gas exports in total export of goods (by value) remains high at 58.7%.

Read more: Russia Economic Report 39