Analysis of the consumer price index of the Donetsk People's Republic

The economic situation of the Donetsk People's Republic (DPR) depends on a number of indicators, one of which is the consumer price index. This indicator reflects the dynamics of the average level of prices for goods and services that the population buys for consumption. To predict market development and prevent the negative effects of high inflation, it is very important to analyze the economic factors affecting the consumer price index. The instability of food prices leads to negative consequences for all participants in the food chain: producers (the volatility of food prices does not allow producers to develop and implement effective production programs); consumers (rising food prices have a particularly negative impact on the quality of life of people with low incomes, because purchasing power is declining and inequality is growing); state (inflation will have negative fiscal and budgetary consequences, which, in turn, will lead to significant social tension). According to analytical data, there are significant fluctuations in the consumer price index in the DPR depending on the season. It should be noted that during the period under study, there was no stable dynamics of an increase or decrease in this indicator. The state needs to regulate price changes constantly, especially basic food products. The article examines the dynamics of the consumer price index in the DPR, identifies food products that affected the volatility of the index. The forecast of changes in the index until the end of the year is also carried out. The instruments of influence on the consumer price index of the DPR have been identified, among them: support for domestic producers, stimulation to produce high-quality products, development of short supply chains.