National Bank warns of higher inflation in coming months

Despite gradual recovery of the Ukrainian economy, the trend toward accelerating inflation will prevail in the coming months.

This was stated at a briefing by Kyrylo Shevchenko, Governor of the National Bank of Ukraine, an Ukrinform correspondent reports.

"In the coming months, the accelerating inflation trend will remain in place, despite gradual resumption of production," Shevchenko said.

The top banker noted that in April, inflation rose to 16.4% on year. According to preliminary estimates by the National Bank, in May this year, inflation continued to accelerate due to disrupted business processes and logistics.

"Certain revival of economic activity, gradual adjustment of logistics, and increasing supply to both domestic producers and importers slowed down the inflation spree. Relatively low demand and surplus agricultural raw materials also restrained rising prices," said Shevchenko.

At the same time, the NBU chief added, war-torn production and logistics fuel inflation. High world energy prices also remain a significant pro-inflationary factor, putting pressure on consumer inflation both directly and indirectly – due to rising production costs.

As Ukrinform reported, on June 2, the National Bank decided to change the key rate from 10% to 25%.