2023-03-16T17:18:00+02:00 Economy 2024-09-15T05:43:54+03:00

Ukrainian news

NBU Predicts Further Decrease In Inflation

NBU Predicts Further Decrease In Inflation

The National Bank of Ukraine (NBU) predicts a further decrease in inflation.

This is stated in the message of the NBU, Ukrainian News Agency reports.

It is noted that the further increase in the attractiveness of time deposits in hryvnia against the background of decreasing pressure in the cash segment of the foreign exchange market will encourage depositors to increase savings in the national currency.

This will strengthen the stability of the foreign exchange market and protect international reserves, which will support further improvement in exchange rate and inflation expectations.

The reduction of inflationary pressure will also contribute to the reduction of world inflation, including due to the cheaper energy sources, and the effect of a high base of comparison of the first year of a full-scale war.

Relatively restrained consumer demand will limit price growth.

At the same time, the duration and intensity of hostilities and the subsequent destruction of critical infrastructure remain significant risks for inflationary dynamics.

Risks are also relevant:

- additional budgetary needs and significant quasi-fiscal deficits in the energy sector;

- complication or termination of the "grain corridor";

- premature easing of monetary policy by leading central banks in response to increased threats to financial stability, which may lead to a slower decline in world inflation, as well as increased volatility in global financial markets.

As Ukrainian News Agency earlier reported, in February 2023, consumer prices rose by 0.7%.

In January-February 2023, inflation was 1.5%.