Inflation will accelerate slightly from the middle of the year, 8.6% expected by the end of the year - NBU
Kyiv • UNN
According to the National Bank of Ukraine, inflation in Ukraine will accelerate slightly from the middle of the year and reach 8.6% by the end of the year. However, by 2026, it will decline to the 5% target.
In Ukraine, inflation will accelerate slightly in the middle of the year. By the end of the year, it is expected to reach 8.6%. This was reported by UNN with reference to the National Bank of Ukraine.
Details
"Inflation will remain within the target range of 5% ± 1 pp in the coming months. From the middle of the year, it will accelerate somewhat as the effects of last year's record harvest wear off. Further pressure on prices will be exerted by a further recovery in consumer demand, as well as the transfer of business costs to consumer prices, in particular due to still high security risks and higher wages," the report says.
However, it is noted that inflation will remain moderate, including due to the NBU's measures to ensure exchange rate stability and the attractiveness of hryvnia assets.
"It is expected to reach 8.6% at the end of the year. In 2025, inflation will return to the target range, slowing to 5.8% at the end of the year, and in 2026 - to the target of 5%," the NBU informs.
This is reportedly due primarily to the reduction in security risks assumed in the forecast. This will ensure an overall improvement in expectations, as well as help to establish logistics and production processes. The NBU's interest rate and foreign exchange policy measures will also remain an important factor in reducing price pressure.
AddendumAddendum
The National Bank of Ukraine has kept its key policy rate at 15%.
