Inflationary pressure in Ukraine remains high

Fundamental inflationary pressure in Ukraine remains high despite a drop in food prices against the backdrop of sustained consumer demand.
The National Bank of Ukraine (NBU) gave such a forecast in a comment on published statistics on inflation, which accelerated to 9% in August year-over-year. Inflation in August was close to the NBU's forecast trajectory built on the basis of a possible increase in gas tariffs, but if the component of the tariff increase is excluded, the indicator then slightly exceeded the regulator's expectations.
According to the central bank, this is primarily due to higher than expected growth rates of other administratively regulated rates and fuel prices. Read also Ukraine's draft 2019 budget lays down inflation at 7.4% An updated inflation forecast will be available on October 25 and is to be published on November 1, the NBU said.
As UNIAN reported, inflation in Ukraine in August 2018 in annual terms, compared to August 2017, was 9%, accelerating from 8.9% in July 2018. The National Bank predicts inflation at the end of 2018 at the level of 8.9%, which almost corresponds to the government's forecast set at 9%. The International Monetary Fund and the World Bank expect inflation in Ukraine this year at 10%.

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