NBU expects consumer inflation to remain at the level of 5% in 2020

The central bank stated this in its quarterly Inflation Report for January 2020, according to the NBU press service.

"Consumer inflation is expected to be below the target level of 5% ± 1 p.p. for the most of 2020. It will return to its range at the end of the year and remain close to the target of 5%," reads the report.

The regulator notes that economic growth will gradually accelerate up to 3.5% in 2020 and 4% in 2021-2022.

Results from the strengthening of the hryvnia exchange rate in 2019 will be seen in early 2020. Together with low energy prices, this will keep inflation below the target range for the most of 2020. Then it will slightly accelerate and be near a medium-term target of 5%. Economic growth in 2020 will accelerate to 3.5% in 2020 and about 4% in the coming years as a result of the easing of monetary policy, structural reforms and an improved investment climate.

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