Determinants of inflation in conditions of global changes and conflicts-the case of North Macedonia

The start of the Russian special operation in Ukraine caused the disruption of global supply chains, the
destabilization of financial markets and the global growth of energy prices. Namely, the growth of energy prices,
which are basically primary raw materials in the production process, was reflected on global inflation, causing
significant growth. According to statistical data, it can be concluded that developing countries, which are import
dependent economies, recorded the highest rate of inflation growth compared to developed countries, primarily
due to the high degree of macroeconomic volatility and import-substitution dependence. The focus of the research
is the movement of inflation in the Republic of North Macedonia and the determinants of growth. The purpose of
the research is to identify the determinants that cause the growth of inflation in the country during geopolitical
changes and conflicts. The research is based on secondary methods, and based on the regression analysis, it can
be concluded that most of the inflation growth is determined by the global growth in energy prices and the
destabilization of the financial markets.