Using wavelets to analyze the territorial heterogeneity of inflation

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.