The article considers the relationship between inflation and innovation processes in economy of Russia. The low level of inflation in Russia has not positively affected activation of innovation development. Researchers have formed economic models that determine the multidirectional impact of expansion of innovative production on the inflation dynamics. Theoretical models are not effective in Russia for structural deformations and institutional problems are not got over yet. Currently, the situation has formed the background in favor of increasing inflation in the early stages of the innovation development of Russia.
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