Assessment of the impact of unemployment on price dynamics: regional aspects

The article analyzes the relationship between the phenomena of inflation and unemployment. The dependence of inflation and unemployment in the form of a Phillips curve is considered, and the confirmation of this theory is estimated on regional data. Mathematically, the relationship between unemployment and inflation is estimated using econometric methods, the construction of a linear model of multiple regression. In the article, the inflation of the region is decomposed into factors, the most significant factors affecting the dynamics of regional inflation are described, among which the unemployment factor is given. The concept of natural unemployment NAIRU is described, the effect of the ratio of the actual level of unemployment and natural on inflation is estimated. Explanations of the obtained dependencies are proposed, and a conclusion is made about the relevance of Phillips’ ideas.