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Jobhunter Paradise in Russia Complicates Central Bank's Work

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As Russian inflation hurtled toward the central bank’s target of 4 percent this year, there was one warning policy makers thought fit to mention after every meeting.

With its economic outlook turning increasingly positive, the Bank of Russia has been pointing to “signs beginning to emerge that labor shortages are finding their way into individual segments” of the jobs market, a refrain repeated in statements in February, March and April. If productivity gains don’t keep up, there’s a risk that companies will have to raise prices to cover higher labor costs, putting pressure on inflation.