Fuel and gas price hikes amid the Middle East war will affect inflation - NBU

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The National Bank expects a higher inflation trajectory due to rising oil product prices amid the war in the Middle East. The regulator plans to stabilize the market.

Inflation in Ukraine may follow a higher trajectory than predicted, particularly due to rising energy prices, including fuel and gas, against the backdrop of the war in the Middle East, the National Bank of Ukraine reported on Thursday, writes UNN.

Details

As noted by the National Bank, "in recent weeks, the situation in Ukraine's energy sector has improved, which should limit price pressure." "For its part, the NBU will maintain an appropriate level of monetary conditions to preserve the attractiveness of hryvnia instruments and ensure the stability of the foreign exchange market. This, among other things, should also help calm inflationary expectations," the NBU indicated.

However, the war in the Middle East has led to a significant increase in the price of oil products and gas, which is already affecting domestic prices in Ukraine. As a result, the inflation trajectory in the coming months is highly likely to be somewhat higher than foreseen by the N NBU's January forecast.

- reported the National Bank.

At the same time, the NBU noted, "there is uncertainty regarding the further development of the situation."

Ukrainians will be able to receive cashback for fuel starting March 2018.03.26, 19:22

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