The paper reviews the effect of nonmonetary factors on inflation dynamics in Russia from 2000 to 2018. The period under review was divided into two intervals with different economic dynamics: 2000–2008 – the period of economic growth in Russia, 2009–2018 – the period of a slower rate of economic growth. Both periods were analyzed for various nonmonetary factors having an impact on inflation, which helped reveal common as well as distinctive features of nonmonetary factors. Some factors, such as the growth rate of agricultural prices had a significant impact on the consumer price inflation dynamics over the whole period under research. Other nonmonetary factors ceased to have an effect on consumer prices making room for others. Thus, the volume of imports turned out to be significant only in the period from 2009 to 2018, which is explained by the geopolitical situation and introduced economic sanctions. The conducted research confirmed a growing role of nonmonetary factors in the inflation processes. This conclusion requires consideration of specific features of nonmonetary causes of inflation on behalf of the Central bank and the fiscal organs in development of concrete steps to reduce inflation. The priority should continue to be given to effective tariff regulation, modernization of industry and promotion of competition.
Inflation Dynamics and the Role of Oil Shocks: How Different Were the 1970s?