Determinants of the Care Inflation in the Russian Economy

Inflation is the cause of many serious problems and has a negative impact on many areas of the economy. In this paper the main factors of core inflation in Russia in the period from 2003 to 2023 are considered and the vector error correction model is evaluated, which allowed us to assess the significance, duration of the effect and influence of the studied factors. As a result of the work carried out, the following conclusions have been drawn: 1) in the long term, the level of real wages and price expectations of enterprises have a significant impact on basic price index in Russia; 2) in the short term, the level of real wages and price expectations of enterprises have a significant impact on basic price index in Russia, and the impact of wages is longer; 3) Brent oil prices, ruble-dollar exchange rate have a significant and positive impact in the short term; 4) there is a significant structural shift in the time series of basic price index. These conclusions will allow enterprises to form stable inflation expectations and help government authorities to create effective monetary policy instruments.