With inflation expectations anchored, price spikes do not spread between market segments, and inflation returns to the target level. We have assessed that the expectations of Russian economists have been anchored since 2017, while those of households have not yet been anchored.
The changes in the Russian labour market caused by the corona crisis have been largely temporary, but some of them may take hold and become the ‘new normal’. Sustained changes in the labour market will also affect inflation in the Russian economy.
During a crisis, real-time data is particularly important: the economic situation requires prompt governmental and regulatory decisions. Industry-specific financial flow monitoring developed by the Bank of Russia allows analysis of business activity on a daily basis.