By year-end, the NBU expects a slowdown in inflation to 8.9%
The may inflation was slightly below the trajectory forecast by the National Bank.
The decline in inflation in may to 11.7% in annual terms (compared to 13.1% in April) due to the rapid slowing of the rise in price of food. This is stated in the report of the National Bank.
“A further decline in inflation in annual terms was expected, and its the may figure was slightly below the trajectory forecast by the National Bank. This was mainly due to the rapid slowdown in prices for food products”, – stated in the message NBU.
In addition, the regulator noted that it is not as fast as in April, grew and administered prices due to the slowdown in growth of prices of tobacco products and more moderate than last year, the increase in tariffs for housing and communal services.
The NBU also drew attention to the gradual exhaustion of the temporary supply factors that caused the growth of consumer inflation in the second half of 2017 and the first months of the current year.
“This is due to more favorable weather conditions this year compared to spring frosts last year, and the increased supply of imported products. An additional factor is the National Bank’s tight monetary policy, which manifested itself primarily through the strengthening of the hryvnia exchange rate since the end of January 2018”, – stated in the message.
At the same time, the NBU added that as in previous months, in may continued pressure on prices from the further growth of production costs, particularly labor costs, as well as rapid recovery of consumer demand.
Earlier in Nabanga said that by year end inflation should fall below 10%.
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