2024-05-03T11:47:00+03:00 Politics 2024-09-15T04:26:48+03:00

Ukrainian news

Inflation this year will accelerate to 8.2%, and next year, it will slow down to 6% - NBU

Inflation this year will accelerate to 8.2%, and next year, it will slow down to 6% - NBU

Inflation will accelerate moderately in 2024 to 8.2% but will decrease to 6% the following year and 5% in the future.

This is stated in the inflation report of the National Bank of Ukraine (NBU), the Ukrainian News agency reports.

It is expected that inflation will remain low in the coming months, although it will turn towards growth.

In the II quarter, it will return to the NBU's target range of 5% ± 1 percentage points and will temporarily go beyond it in the second half of the year.

The forecast of the NBU predicts an acceleration of inflation to 8.2% by the end of 2024.

This will happen both due to the pressure from business expenses for labor costs and the further recovery of consumer demand, and due to the exhaustion of the influence of temporary factors that led to a sharper decline in inflation at the beginning of the year.

It is, in particular, about the effects of last year's significant harvests and this year's mild winter.

At the same time, the easing of external price pressure and the NBU's monetary policy measures will restrain price growth.

Maintaining a manageable situation in the foreign exchange market will make it possible to keep inflationary and exchange rate expectations under control, which, in turn, will create space for a further reduction of the discount rate.

This will support the development of lending and recovery of the economy while simultaneously ensuring the protection of hryvnia savings from inflationary depreciation.

At the same time, the NBU will adapt the monetary policy in case of significant changes in the balance of risks for inflation and the stability of the foreign exchange market and, under the condition of positive developments, will accelerate the cycle of lowering the discount rate.

As the Ukrainian News agency earlier reported, in March 2024, consumer prices rose by 0.5%.

In the first three months of 2024, inflation was 1.2%.