Inflation to accelerate by the end of the year but remain moderate - NBU
Kyiv • UNN
National Bank Governor Andriy Pyshny said that inflation in Ukraine will moderately accelerate by the end of the year due to the constant pressure on business costs from the war, but will remain at a moderate level.
Inflation in Ukraine will accelerate at the end of the year but remain at a moderate level. The National Bank expects inflation to grow moderately over the coming months and exceed the target range by the end of the year due to persistent pressure on business costs in the war. This was stated by National Bank Governor Andriy Pyshnyi during a monetary briefing, according to a UNN correspondent .
Fundamental inflationary pressure corresponded to the NBU's April forecast – core inflation was 4.4%, remaining within the target corridor for more than six months
According to him, lower commodity food prices and relatively stable inflation expectations, which are resistant to exchange rate fluctuations, helped to restrain price growth for a wide range of goods and services.
On the other hand, rising business costs, including wages and electricity costs, have led to price increases for a large part of the components of the core CPI.
Inflation will accelerate by the end of the year, but remain moderate.The NBU expects inflation to accelerate moderately in the coming months and to exceed its target range by the end of the year. Such price dynamics will be determined primarily by the continued pressure on business costs in the wake of the war, likely somewhat lower harvests after last year's record highs, the pass-through to prices of relatively high wage growth, and higher electricity tariffs
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