In August 2021, the inflation rate in Ukraine in the annual measurement remained on the level of 10.2 percent. The State Statistics Committee of Ukraine reported that on September 9.
After the 0.1 percent-rate inflation in July, the 0.2-percent rate was observed in August. This meets the rate of price development in August 2020. The basic inflation in August 2021 was 0% after the 0.1% deflation in July. In August 2020, the basic inflation rate was 0.1 percent.
On the whole, over eight months of 2021, the inflation level in this country made 6.2 percent. The basic inflation rate made 4.2 percent.
While new Covid-19 infections have stabilized and most restrictions to stem the disease’s spread were lifted in May, Ukrainians have endured one of Europe’s slowest vaccination campaigns, holding back a rebound economists expected to be driven by consumers and agriculture. What’s more, with just 6% of the eastern European country’s 41 million population fully inoculated, the more transmittable delta strain is taking hold.
- The result marks the second time since the pandemic erupted that Ukraine’s economy has shrunk for two straight quarters and will come as a blow to investors in the country’s GDP warrants -- instruments issued during a 2015 debt restructuring that pay out based on the level of growth
- The question now is how much this will drag down full-year forecasts. The central bank had been predicting expansion of 3.8% for the whole of 2021, though warned that a monthlong lockdown triggered with the delta variant could shave 0.6% off that
- But a bigger headwind may come from inflation, which is pushing the bank to add to this year’s three increases in benchmark borrowing costs