The Cabinet assessed the probability of the fall of the hryvnia

In Ukraine may increase prices due to the weakening of the hryvnia

In the first quarter of next year in Ukraine is possible acceleration of inflation due to the weakening of the hryvnia.

In the beginning of 2020 may be a temporary weakening of the hryvnia, which may accelerate inflation. This is stated in the comments of the Department of economic strategy and macroeconomic forecasting of the Ministry of economy.

As noted, until the end of 2019 is expected to lower inflation than expected, due to a significant strengthening of the exchange rate.

“In the quarter 2020 the formation of inflationary trend will occur in the first place, under the influence of seasonality on the food market, as well as possible temporary weakening of the hryvnia,” – said in the message.

Experts of the Ministry of economy among the risks of accelerating inflation indicate the growth of production costs (because of rising wages and electricity tariffs), and their rapid transfer to consumer prices.

“Additional risk is the possible lack of gas transit through the territory of Ukraine (the impact on the exchange rate of the hryvnia) and the restoration of growth trends in energy prices on the world market against the background of existing geopolitical conflicts in the middle East” – says the publication.

Earlier, the national Bank said that the strengthening of the hryvnia may be accelerated. The regulator is guided by the experience of the Eastern European countries where the national currency was strengthened due to the reforms.

At the same time, the head of the NBU Council Bohdan Danylyshyn believes that the strengthening of the hryvnia, there are no fundamental reasons.

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