This Saturday (27th, December), I upgraded my project Rails version from version 4.1.5 to version 4.2.0. And I also upgraded the Ruby version from 2.1.2 to 2.1.5.
Today,
I did all of the above without result. Then I discovered that i18n couldn't be installed because my Ruby version was too low. (Said message was lost in the blast that bundler emits.) I updated Ruby and voila! i18n installed. NB: for some reason, Gemfile.lock showed it as installed even before this success, but RubyMine didn't show it as one of the installed libraries. Go figure.