The analysis of main macroeconomic variable´s shock effect to CPI

Many factors influence CPI, the movement of main macroeconomic variables (economic growth, employment and foreign exchange reserves) influence CPI a lot. In the paper, we can find the existence of cointegration relationships between main macroeconomic variables and CPI. This means the study of only one macroeconomic variable´s shock effect to CPI is probable one-sided view. So, this paper uses impulse response and variance decomposition which both based on 4 variables VAR model and studies main macroeconomic variables´ shock effect to CPI.