Ukraine Gate- Kyiv – April 14, 2022- The National Bank of Ukraine announced that inflation may reach more than 20%, but it will remain under control.
Consumer inflation accelerated from 10.7% in February to 13.7% in March 2022, and inflationary pressures will continue due to the all-out war in the country.
Where a meeting of the Monetary Policy Committee of the NBU was held to assess the current economic situation in the country, and experts expect during the year an increase in inflationary pressure due to the violation of production processes, as well as logistical problems due to the temporary occupation of part of the Ukrainian territory, the destruction of transport infrastructure, and also the effects of a decrease The hryvnia exchange rate occurred on the eve of the war.
This will increase prices due to the rising cost of energy in the world, which will put pressure on the cost of fuel, goods and services with a large share of energy in the cost.
The rise in prices will also be restrained by measures of the NBU and the government such as temporary fixing of the hryvnia exchange rate, tax cuts, setting prices for housing and communal services, and administrative regulation of prices for a number of foodstuffs and fuels.
The oversupply of some crops could affect export opportunities, and the regulator stresses the need to gradually return to inflation targeting by shaping the floating exchange rate.
