The article presents a retrospective analysis of the dynamics of inflation in the Russian economy from the beginning of market reforms in the 90s of the twentieth century to 2018 and shows the stages of the evolution of modern monetary policy from the beginning of the XXI century to the present. The action of the cyclic mechanism of change of modes of functioning of the Russian economy in the conditions of inflation of demand and inflation of costs is shown. The efficiency of monetary policy of the Bank of Russia based on descriptive analysis of official data published on the website of the Bank of Russia is also assessed.