National Bank expects deceleration of inflation

Source : 112 Ukraine

The inflation accelerated up to 16.4% on an annualized basis in September
19:38, 13 October 2017


The National Bank of Ukraine (NBU) expects the deceleration of inflation until the end of 2017 after it moved beyond the prognosis of 9.1%. Deputy Head of the National Bank Dmytro Sologub claimed this to Intefax-Ukraine.

According to Sologub, the National Bank will publish the new prognosis on the inflation later and noted that the inflation should decelerate in Ukraine until the end of 2017.

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‘We expect the deceleration of the inflation until the end of the year. The prognosis is still discussed and it will be published on October 26 so I do not want to name the exact numbers. The other issue is really important. We do see neither accelerating inflation nor stunning devaluation despite the unpleasant fact of the increase of the inflation. Our goal now as the police-makers is to correctly communicate this and make the rights decisions on the monetary policy that will further the return of the inflation to the earmarked range’, he said.

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According to Sologub, the increase of the inflation up to 16.4% as at September was influenced by a few factors and their effect should weaken in the near time.

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‘It is just a stratification of three factors – inner situation at the tobacco market, weather plus growth of the export that influenced four products’ groups. We estimate which factors should be taken into account during the making of the decision on the monetary policy and which should be rejected. The situation is dynamic: when it started in April-May 2017 then it looked like a temporary shock. At this moment it begins to reduce step by step. It is seen at the prices for tobacco, at the occurring every ten days statistics of the State Statistics Service that spotted the beginning of the falling of prices for meat’, he said.

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Earlier it was reported that the consumer’s inflation increased up to 16.4% on an annualized basis and the consumer prices increased up to 2%. The inflation grew up to 10.2% from the beginning of the year and moved beyond the prognosis of 9.1%.

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