MOSCOW, Feb 21 (Reuters) - Inflation in Russia is seen gradually accelerating towards a central bank target of four percent in the second half of 2018, the central bank said on Wednesday.
In a monthly report on inflation, the central bank said inflation will pick up later this year from the 2.2 percent seen in January as the regulator continues cutting rates.
Muted demand in the economy and declining inflation expectations have helped anchor inflation at low levels, the central bank said.
By the end of the year, inflation is seen slightly below four percent, said the central bank, which last cut its key rate to 7.5 percent earlier this month. (Reporting by Andrey Ostroukh; Editing by Jack Stubbs)