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Analysis of the Regional Differentiation of Inflation
[Анализ Региональной Дифференциации Инфляции]

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  • Trunin, Pavel (Трунин, Павел)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Sinelnikov-Murylev, Segei (Синельников-Мурылев, Сергей)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Perevyshin, Yuri (Перевышин, Юрий)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

  • Egorov, D.A. (Егоров, Д.А.)

    (Russian Presidential Academy of National Economy and Public Administration (RANEPA))

Abstract

The paper studied the factors of regional differentiation of price levels and inflation in the Russian regions. The law of one price for certain goods in the Russian regions is true for a group of products that can be called homogeneous: their quality and functional properties do not differ between regions. For 70% goods considered the hypothesis of one price was rejected. The extent of price differences in the Russian regions are declining, but still remain significant. In 2015, the cost of living in the cheapest and most expensive region differed 2.5 times. The reasons for price differences in the Russian regions include the level of per capita income and the degree of remoteness of the region from the rest. Domestic factors, determined on the basis of macroeconomic indicators, explained about 53% of the variation of the regional rate of inflation in 1996-2015.

Suggested Citation

  • Trunin, Pavel (Трунин, Павел) & Sinelnikov-Murylev, Segei (Синельников-Мурылев, Сергей) & Perevyshin, Yuri (Перевышин, Юрий) & Egorov, D.A. (Егоров, Д.А.), 2017. "Analysis of the Regional Differentiation of Inflation [Анализ Региональной Дифференциации Инфляции]," Working Papers 021708, Russian Presidential Academy of National Economy and Public Administration.
    • Handle: RePEc:rnp:wpaper:021708
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    References listed on IDEAS

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    1. Bela Balassa, 1964. "The Purchasing-Power Parity Doctrine: A Reappraisal," Journal of Political Economy, University of Chicago Press, vol. 72(6), pages 584-584.
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