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The NBU said what kind of inflation Ukrainians should be prepared for

Photo: facebook.com/NationalBankOfUkraine

According to the head of the National Bank, Andriy Pyshny, inflation will decrease from the spring of this year.

The National Bank forecasts a slowdown in inflation to 18.7% in 2023 due to tighter monetary policy, lower global inflation and weaker consumer demand due to power outages. This was stated in the column of the head of the NBU Andriy Pyshny for publication economic reality.

“We are waiting for spring, starting from February 24, 2022, and it will definitely come. Meanwhile, the macro-financial situation will gradually improve,” the banker said.

According to Pyshny, inflation will decrease from the spring of 2023. “This will be helped by the strict monetary policy of the NBU, a decrease in global inflation and the subsequent adaptation of business. Price growth will be restrained by still weak demand of consumers, who, in the face of a lack of electricity, are reoriented to urgent needs,” said the head of the NBU.

The NBU’s inflation forecast for the current year has dropped to 18.7%. In 2024, inflation will decrease to 10.4%, and in 2025 to 6.7%. Thus, the inflation rate will be closer to the target range of 4-6%.

“The NBU does not plan to change its inflation target, because it is precisely this range that is optimal in order, on the one hand, to prevent a rapid decrease in savings, and on the other hand, to enable the economy and work and build,” said Pyshny, noting that the discount rate will remain at 25% for a long time.

Recall that consumer prices in Ukraine in January 2023 compared to January last year increased by 26.0%, which is lower than the annual inflation a month earlier (26.6%).

Ministry of Economy confirms inflation forecast at 28%

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Source: korrespondent

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