Inflation will moderately slow down in 2023 – NBU
At the same time, consumer inflation in Ukraine will remain high
What happened? The National Bank of Ukraine (NBU) forecasts a moderate slowdown in inflation in 2023. At the same time, consumer inflation in Ukraine will remain high.
Source. The press service of the NBU.
Details. As the regulatory authority explains, the risks of inflationary processes and deterioration of expectations remain significant, in particular due to possible exacerbations at the front, as well as "terrorist attacks by russia and the resulting electricity shortages."
In December 2022, consumer inflation in annual terms was 26.6% and remained virtually unchanged compared to the price growth rates in November (26.5%) and October (26.6%). In monthly terms, prices increased by 0.7%. Actual consumer inflation in December 2022 was lower than one forecasted in the October 2022 Inflation Report.
"In particular, this happened due to the restoration of supplies to the liberated Kherson Oblast, the expansion of food supply, and weaker consumer demand in the face of power outages following a series of russian terrorist attacks. Additionally, inflation was restrained by the strengthening of the cash hryvnia exchange rate in autumn and stabilisation of inflation expectations," the regulator adds.
The NBU reported that last year core inflation rose to 22.6%. Processed food products rose in price by 29.3% over the year, prices for non-food products increased by 21.3%, having slightly accelerated in December.
The growth rate of the cost of services in 2022 was 14.8%, having decreased in December compared to November.
Fuel prices increased the most – at the end of 2022, this growth amounted to 69.4%. It is reported that this is due to increased demand for energy from the population and business caused by the need for autonomous generation of electricity in conditions of its shortage, as well as difficulties with fuel supply. The rise in fuel prices made a significant contribution to the acceleration of inflation in 2022, as it affected the prices of a wide range of goods.
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