NBU expects inflation to decline to 5% by the end of 2020

NBU expects inflation to decline to 5% by the end of 2020

The National Bank of Ukraine (NBU) has reiterated its forecast that inflation will decline to 5% by the end of 2020.

NBU Governor Yakiv Smolii stated this at a press conference on Thursday, an Ukrinform correspondent reported.

"We reiterate our forecast that the medium-term inflation target will reach 5% by the end of the next year. The macroeconomic factors observed since the previous meeting of the Monetary Policy Board have not changed the risk balance for the forecast," Smolii said.

He noted that inflation in July (9.1% year-on-year) was higher than the forecast trajectory published in the latest NBU’s Inflation Report. The National Bank estimates that inflation will decline in August, although it will remain above the forecast trajectory. This deviation is due primarily to temporary factors on the supply of food, in particular vegetables.

Smolii also noted that the strengthening of the exchange rate would also help slowing down inflation in the coming months.

As Ukrinform reported, the growth of consumer prices in Ukraine in 2018 slowed down to a single indicator for the first time since 2013 and amounted to 9.8%.


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