At the end of March, inflation rose to 13.7% in annual terms, and in general it could exceed 20% by the end of the year.
By the end of 2022, inflation in Ukraine could exceed 20%, according to the website of the National Bank on Thursday, April 14.
As reported, the increase in the price of goods and services was due, in particular, to disruptions in production processes, logistical problems due to temporary occupation of part of the territories, the deterioration of transport infrastructure and, as result, an unevenly distributed supply across individual regions.
Inflation growth will also be affected by the pass-through effects of the devaluation of the hryvnia exchange rate that occurred on the eve of the war and the high cost of energy in the world, which will put pressure on the cost of fuel, goods and services with a large share of energy cost.
At the same time, price growth will be prevented by measures taken by the National Bank and the government, including the temporary adjustment of the hryvnia exchange rate, which prevents the likely deterioration of expectations and rising prices of imported goods , tax cuts, including indirect taxation of imports, adjustment of prices for housing and communal services, and administrative regulation of prices for the food and fuel range.
Inflation will also be curbed by the oversupply of some agricultural crops due to limited export opportunities.
The NBU noted that they will again apply the discount rate and other financial instruments to keep inflation expectations under control and gradually reduce inflation after the resumption of monetary transmission channels.
Now, for the second time since the beginning of the war, the NBU keeps the discount rate at 10%.
According to the State Statistics Service, in March, consumer price growth accelerated to 4.5% and reached 13.7% in annual terms.
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Source: korrespondent
