Inflation slowed more rapidly due to a decrease in prices of imported goods and favourable currency market conditions – NBU
The regulation authority forecasts a further decrease in inflation – to 10.6% by the end of 2023, and 8.5% – next year
The actual inflation rate in Ukraine was lower than the trajectory forecasted by the National Bank, as published in the Inflation Report for July 2023.
This was announced by the regulator.
According to NBU data, the faster deceleration of inflation was influenced by a higher supply of raw food products, along with a continued reflection of favourable currency market conditions and improved inflation expectations in the prices of certain goods, especially imported ones.
"The NBU forecasts a further reduction in inflation – to 10.6% by the end of 2023 and 8.5% the following year," the National Bank highlighted. There are risks of increased inflationary pressures, primarily due to high security risks that negatively impact expectations, as well as continued war-related damages, the NBU added.
Furthermore, it was clarified that the price dynamics might be affected by a quicker than expected economic activity recovery. "The NBU will continue to ensure the necessary monetary conditions to support exchange rate stability, improve expectations, and maintain disinflationary dynamics," emphasised the regulator.
Background. Earlier, Mind reported that the NBU improved the inflation forecast for 2023 from 14.8% to 10.6% and raised the GDP growth projection from 2% to 2.9%.
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