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Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis

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  • Alexander Bass

    (Department of Statistics, University of Nigeria, Nsukka, Nigeria.)

Abstract

In this article we aim to assess the impact of world oil prices shocks on inflation dynamics in Russia. Based on the data for the period 2010-2017 for Russia we explore the relationship between world oil prices (Brent), exchange rate and Russian consumption price index using a VEC framework. For detecting the casual relationship, Granger causality test is applied. The results of the study show that oil prices, exchange rate and consumer inflation in Russia are cointegrated in the long-run. The results of the Wald test in the short run show that there is a statistically significant relationship between changes in world oil prices, exchange rate and CPI.

Suggested Citation

  • Alexander Bass, 2019. "Do Oil Shocks Matter for Inflation Rate in Russia: An Empirical Study of Imported Inflation Hypothesis," International Journal of Energy Economics and Policy, Econjournals, vol. 9(2), pages 288-294.
    • Handle: RePEc:eco:journ2:2019-02-34
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    References listed on IDEAS

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    Cited by:

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    2. Ateeque Anwer, 2024. "How Oil Price Shocks Influence on Inflation Rate? Evidence from Malaysian Economy," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 13(2), pages 350-356.
    3. Belloumi, Mounir & Aljazea, Ahmed & Alshehry, Atef, 2023. "Study of the impact of crude oil prices on economic output and inflation in Saudi Arabia," Resources Policy, Elsevier, vol. 86(PA).

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    More about this item

    Keywords

    oil prices; inflation; exchange rate; vector error correction;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F31 - International Economics - - International Finance - - - Foreign Exchange
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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