The Relationship Between the Exchange Rate and Inflation in Russia

The article estimates the short- and medium-run exchange rate pass-through effect on consumer prices on the aggregate level and for individual groups of goods and services for the period from 2000 to 2008. It shows that the improvement of certain macroeconomic indicators in recent years in Russia has not led to a reduction in the pass-through effect on inflation as in other countries. The pass-through effect has a pronounced asymmetrical character, that is, consumer prices are more likely to respond to the depreciation of the domestic currency, rather than to its appreciation.