Inflation in Ukraine accelerates to 27.5% in Dec, but remained below NBU forecast

KYIV. Jan 6 (Interfax-Ukraine) – Inflation in Ukraine accelerated to 27.5% in December, but remained below the October forecast of the National Bank (30%), according to the macroeconomic and monetary review published by the NBU.

"Consumer inflation accelerated, further reflecting the consequences of Russia’s full-scale war against Ukraine. At the same time, inflation grew slower than the NBU forecast due to the expansion of food supply, de-occupation of territories, weak consumer demand, strengthening of the hryvnia exchange rate and stabilization inflation expectations," the report said.

It is indicated that the main factors of inflation growth are the disruption of supply chains, the destruction of industries, the reduction in the supply of goods and services, the increase in production costs of businesses, as well as the shortage of electricity.

According to the NBU, in the next 12 months, banks expect inflation at 23.7%, enterprises – 23.3%, financial analysts – 20.2%, and households – 14.3%.

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