NBU: the Growth of prices in Ukraine reached a peak

НБУ: Рост цен в Украине достиг пика

NBU warns that prices can crawl up

Inflation for the first six months was higher than forecast, but then it is expected to decline.

In June 2017, the rate of inflation in Ukraine in annual terms reached a peak this year, after which it is expected to be a gradual decline. This was reported by the press service of the National Bank of Ukraine.

“Actual headline inflation in June (15.6 per cent) was higher than the forecast of the National Bank due to a sharp rise in price of raw foods. Rising prices for meat and milk continued to accelerate due to high world prices and significant exports of these products. The growth of prices for fruits and vegetables have also exceeded the expectations of the National Bank”, – stated in the message controller.

According to the national Bank, the core inflation in June rose to 6.8% in annual terms continued to accelerate in July. This is due to the secondary effects from a rise in price of raw products, increase production costs including labor costs and rising prices for services in maintenance of houses.

“At the same time, inflation has hampered the strengthening of the hryvnia exchange rate to dollar”, – noted in the NBU.

The regulator expects that in July with a high probability will be deflation in month-on-month measure, which will continue in August. Accordingly, inflation in annual terms will gradually approach the trajectory, which predicts the national Bank.

But prices can still begin to grow in the second half, with increased budget spending and pension payments in the second half.

“Also, against the background of high current growth rates of the prices the risk of changes in the trend of improvement in inflation expectations observed in the last two years,” warned the NBU.

As reported Корреспондент.netearlier in July, the national Bank worsened the forecast of growth of real GDP in 2017 to 1.6% from 1.9%, keeping inflation at 9.1%.

Earlier, the head of the NBU Valery Gontareva said that she sees a clear depletion trend in Ukraine.

Source