Current Aspects of Inflation Dynamics in the City of Sevastopol

Abstract

Periodicals of economic literature thoroughly described the influence on inflation exerted by fluctuations of the national exchange rate and other external factors, which become apparent in imported inflation. The article analyzes and estimates the most important factors stimulating inflation in the city of Sevastopol. As the information base the authors used data of budget administration in Sevastopol in 2016–2020, official statistics and information of the Bank of Russia, as well as works by economists. This analysis helps identify factors exerting steady long-term influence on annual figures of inflation showing key trends in price dynamics in the region. Researching causes of negative impact on inflation processes takes into account the budget channel of regional economy financing, including through social benefits to people, retail crediting and other factors. The method of correlation analysis gives an opportunity to identify the most important acute pro-inflation factors. The findings can be used as extra information to forecast inflation processes in the region with regard to the impact of steady factors, which could improve the quality of forecast and provide price stability in the region.