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Globalization of economic processes, liberalization, openness of national economies – all this leads to an increase in external factors that influence inflationary processes. The degree of influence of external factors on inflation is difficult to predict, but the more open a country's economy is, the stronger the impact of external causes on inflation. The volatility of the exchange rate is one of the factors having an external cause that influence the change in prices in the country. This phenomenon is called the transfer effect. Based on theoretical models of an open economy, it is proved that a number of different reasons affect the degree of the transfer effect, among them the future dynamics of the exchange rate. With a volatile exchange rate, it is difficult to accurately predict the future dynamics, but the current prices of imported goods are more sensitive to the expected future dynamics of the exchange rate than to its changes at the moment. n the same country, as the inflation rate decreases, the effect of the transfer of exchange rate volatility may decrease. According to observations, in a group of developing countries, including Russia, China and Brazil, both in the short and long term, as the inflation rate decreases, the magnitude of the transfer effect also decreases. The need to study and evaluate the transfer effect in the Russian economy is due to the increased tendency of the ruble to volatility and the orientation of the country to export raw materials. Prices on international markets have an impact on the economic situation in Russia, which affects the ruble exchange rate. However, studies show that in Russia there is often an asymmetric reaction of prices to changes in the exchange rate, when prices react more strongly to the fall of the ruble than to its strengthening.
Keywords:exchange rate, volatility, inflation, transfer effect, price level, internal market, export, import.
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