By the end of the year, inflation is expected to rise to 31%. In general, the situation with prices depends on the course of the war.
Don’t expect hyperinflation in Ukraine, despite the ongoing war. The further increase in prices was mentioned in the Inflation Review of the Ministry of Economy.
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It was noted that the acceleration of inflation is due to a shock shock in the force majeure conditions of war, which, combined with pressure from energy and food prices in the world, as well as high production costs, have negative impact on prices in general.
“However, due to the scale of human and economic losses suffered by Ukraine during the war, the growth rate of consumer prices remains “suppressed” – in the first half of this year they reached 17.4%, ” said the review.
The Ministry of Economy states that further price increases depend “on the course of events on the battlefield.”
A significant risk of accelerating inflation remains the threat of increasing devaluation of the hryvnia, the exchange rate of which is significantly affected by a shortage of foreign currency due to a deterioration in the trade balance against the backdrop of a blockade of port, an outflow of money due to the stay of a significant part of the population outside the country.
“However, one should not expect extremes in price dynamics, which can lead to very high hyperinflationary rates with a long negative outlook. The state at war will in any case control price processes in the consumer market, ” said the review.
According to National Bank forecasts, consumer prices will increase by 31% by the end of 2022.
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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.