Actual inflation in Ukraine exceeded the predicted national Bank

In August, consumer inflation in Ukraine continued to rise and reached at an annual rate of 16.2% and a monthly measurement of consumer prices decreased by 0.1% due to seasonal cheapening of fruits and vegetables, clothes and shoes. This is stated in the report of the National Bank, published on the official website of the NBU.

It is noted that the actual inflation rate in annual terms has exceeded the trajectory of the National Bank forecast published in the inflation report for July 2017.

«This is primarily due to higher than expected growth in prices for crude foodstuffs and tobacco products. As in previous months, this has resulted in the factors on the supply side, unfavorable weather conditions this spring resulted in higher prices of fruits and vegetables and significant exports of meat and dairy products its higher prices in the domestic market», – explained in the national Bank.

According to the NBU, the secondary effects from the price increase of meat and dairy products, and increasing production costs, including labor, were reflected in cost of services and led to the acceleration of core inflation.

In the end, the basic index of consumer prices rose by 7.8% in annual terms and by 0.2% in the month.

«The actual level of core inflation was slightly higher than the trajectory of the forecast published in the inflation report. Despite this, the fundamental inflationary pressure remained moderate. This contributed to a further improvement of inflation expectations of professional forecasters and the public», – said the press service of the regulator.

Also a restraining factor for inflation according to the national Bank was the state of the currency market, where there was a strengthening of the hryvnia to the U.S. dollar on the background of the favourable external conditions for Ukrainian exports, which encourage people to sell foreign currency.

In NBU 6 July predicted that inflation will remain at 9.1% in 2017 and 6% in 2018.

Actual inflation in Ukraine exceeded the predicted national Bank 14.09.2017

Сентябрь 14th, 2017 by
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