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Regional Economics: Theory and Practice
 

Using wavelets to analyze the territorial heterogeneity of inflation

ISSUE 2, FEBRUARY 2026

PDF  Article PDF Version

Received: 10 October 2025

Accepted: 16 November 2025

Available online: 26 February 2026

Subject Heading: SPATIAL ECONOMICS

JEL Classification: C02, C65, E31, R11

Pages: 4-29

https://doi.org/10.24891/yfqgwc

Mikhail A. STARICHKOV Novgorod Regional Division of the North-Western Main Branch of the Central Bank of the Russian Federation, Veliky Novgorod, Russian Federation
mike157z@mail.ru

https://orcid.org/0009-0008-5165-8888

Subject. The heterogeneity of Russia's spatial structure.
Objectives. Analysis of the territorial differentiation of inflation dynamics from January 2002 to February 2025 using modern applied computational algorithms. Demonstration of the capabilities of wavelets as an additional analytical tool for regional analysis.
Methods. Wavelet analysis algorithms are used, based on the application of multivariate transformations.
Results. Wavelet estimates of the degree of coherence of price dynamics between regions have been obtained. An assessment has been made of the impact of changes in the key interest rate on the high-frequency component of consumer price dynamics. A high inertia of inflationary processes has been identified, indicating a significant influence of fundamental slowly changing factors on them.
Conclusions. Wavelet coherence as a method for assessing pairwise connections demonstrates an advantage over the Pearson linear correlation coefficient and the Fourier coherence function.

Keywords: wavelet coherence, discrete wavelet transform, inflation, discrete signal energy, clustering

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