The Correlation between Energy Resources Tariffs, Inflation and Competitiveness

Abstract

Energy resources tariffs directly affect both the price of the goods and their competitiveness. A growth of tariffs is one of the factors that drives the price index, and provokes a rise in prices for both domestic and imported goods. Therefore, it is important to investigate the relationship between the rate of growth of energy resources tariffs and the dynamics of the level of inflation, as well as to analyze the correlation between tariff levels and competitiveness. Based on the results of the analysis, the author has developed proposals for reducing tariffs and for improving competitiveness, and has described the problems which need to be solved for increasing the competitiveness.