High energy prices, disruption to production and logistics routes, destruction of facilities and infrastructure, and occupation of territories remain major factors exacerbating inflationary pressure.
Consumer inflation in Ukraine in June accelerated to 20.1% y/y in June (from 18.0% in May). This is stated in the monthly macroeconomic and monetary review of the NBU, published on Friday, July 8.
It is indicated that the acceleration of inflation is due to both global trends, particularly high energy prices, and internal factors, which are primarily associated with the war:
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violation of production and logistics routes;
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destruction of property and infrastructure;
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limited stocks and import opportunities;
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conquest of territories.
Inflationary expectations continue to worsen under the influence of rising costs and limited supply.
According to the NBU, the rise in prices for raw products is increasingly accelerated, mainly due to the appearance of the first vegetables, which this year are more expensive due to the temporary employment of southern regions that specialize in their cultivation , as well as increasing the value of their production and supply. .
Cereals, especially buckwheat, have also risen in price due to limited stocks and import opportunities. Meat prices grew faster, mainly due to a reduction in supply from the eastern and central regions.
Accelerating prices for services and non -food items may primarily reflect rising business costs, the analysis says.
“Inflation is constrained by the fixed exchange rate of the hryvnia and a moratorium on raising tariffs for the distribution of heat and gas for the period of martial law and six months after its completion,” the NBU added.
It will be recalled that in June the World Bank lowered the inflation forecast in Ukraine to 20% by the end of 2022, while the forecast in April gave 15%.
At the same time, the government predicts that by the end of 2022, Ukraine’s GDP will decrease by at least 35%. This prediction was made by Prime Minister Denys Shmygal at a conference in Lugano, Switzerland.
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Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.