| Article type | Research article |  |
| Year | 2026 | |
| Author(s) | Yesayan A. | |
| Journal title | Vestnik of Russian-Armenian University (series: humanities and social sciences) | |
| Issue | 2 | |
| Pages | 45-62 | |
| Publication format | ||
| DOI | 10.24412/1829-0485-2026-2-45-62 |
ABSTRACT
This paper investigates the nature of inflationary processes within the context of a small open economy, using Armenia as a case study. The high integration of domestic markets into the global economic system constrains the
effectiveness of regulatory policies. Furthermore, complex interactions among numerous economic agents provoke increasingly frequent shocks, making shortterm adaptation to such fluctuations a significant challenge. The aim of this study is to assess the impact of monetary and non-monetary factors on short-term inflation volatility. To this end, the study classifies inflation drivers based on the Central Bank's ability to control them. The methodology employed includes variance decomposition of CPI components by product groups.
Keywords: Inflation, non-monetary inflation factors, classification of inflation factors, small open economy, structure of inflation in Armenia.
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