ТHE METHODOLOGY FOR INFLATION’ FORECASTING BY THE BANK OF RUSSIA IN THE MEDIUM TERM

Author:

TIKHONYUK Natalya1,POMOGALOVA Elena1

Affiliation:

1. Russian Academy of National Economy and Public Administration (Vladimir branch)

Abstract

The paper sets out to examine approaches to the forecasting of inflation by a macro market regulator. Various approaches to short-term inflation forecasting, inflation factors and their main channels of influence used by bank regulators in various countries are studied. The shortcomings of the used models for predicting inflation in the post-pandemic economy have been formulated. A comparative analysis of the use of various models has been conducted and solutions for building forecasting models in the medium term have been proposed. The approach has been tested for regional inflation forecasting; calculations of the indicators using VAR model, SARIMA, and dynamic method have been presented.  It is proposed to use extended combined VAR models supplemented with exogenous factors for medium-term forecasting.

Publisher

Academy of Public Administration under the President of the Republic of Kazakhstan

Subject

General Medicine

Reference9 articles.

1. Andreyev, A. (2019) Issledovaniye asimmetrii i nelineynosti perenosa dinamiki obmennogo kursa v inflyatsiyu [A study of asymmetry and nonlinearity of exchange rate dynamics passthrough into inflation]. Seriya dokladov ob ekonomicheskikh issledovaniyakh [Working Paper Series], 45, 34-45. (in Russian)

2. Balatskiy, Ye.V. (2019) Uchet porogovykh nemonetarnykh sobytiy v gibridnykh modelyakh inflyatsii [Accounting for Threshold Non-Monetary Events in Hybrid Inflation Models]. JER.1, 6-24. (in Russian)

3. Osnovnyye napravleniya yedinoy gosudarstvennoy denezhno-kreditnoy politiki na 2021 god i period 2022 i 2023 godov (utv. Bankom Rossii) [The main directions of the unified state monetary policy for 2021 and the period of. 2022 and 2023 (approved by the Bank of Russia)]. (2020) Data obrashcheniya: 25.04.2021 SPS Konsul'tantPlyus. (in Russian)

4. O podgotovke stsenarnogo makroekonomicheskogo prognoza i model'nom apparate Banka Rossii (2021) [On the preparation of a scenario macroeconomic forecast and the model apparatus of the Bank of Russia]. Data obrashcheniya: 25.04.2021 https://cbr.ru/Content/Document/File/118793/inf_note_mar_0521.pdf. (in Russian)

5. Prognozirovaniye i model'nyy apparat [Forecasting and modeling apparatus]. (2021 g.). Data obrashcheniya: 25.04.2021. https://cbr.ru/dkp/system_p/. (in Russian)

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