Forex Club: Inflation in Ukraine not to exceed 12.5% at year end

15.11.2016 17:22 1091

A rise in consumer prices in Ukraine may slow down to 11.5-12.5% at the end of 2016 in contrast to 43.3% recorded in 2015.

Mainly, this will result from a tough monetary policy, a moderate rise in household income and passing through a period of the scheduled raising of regulated tariffs, leading expert at the Forex Club information and analytical center in Ukraine Andrii Shevchyshyn has stated, an Ukrinform correspondent reports citing Forex Club's press service.

By the end of 2016, a rise in prices is mainly expected in the food basket and may reach 4% in average. In particular, this refers to dairy, meat, bread and flour products and vegetables due to the end of season and the supply of imported products. In addition, the expenses of households and agricultural processing enterprises will rise as a result of an increase in prices for energy and food resources.

“If the exchange rate of the Ukrainian hryvnia exceeds the expected value of UAH 27-27.2 for U.S. dollar in November, most importers will have to revise the cost of their goods, as it is the exchange rate provided for their expenses and sales. And this means that consumer prices may rise as early as in December. However, if the exchange rate is kept within UAH 27 for U.S. dollar, this will allow for reaching the expected value of inflation within the budget forecast, which is 12%,”  Shevchyshyn said.

A reminder that inflation in Ukraine increased by 2.8% in October against the background of raising tariff rates for public utility services and growing prices for food products. The annual inflation rate reached a maximum of 12.4% since March 2016.

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