The National Bank of Ukraine (NBU) has announced it has started working on an updated inflation forecast for 2017 after inflation hit 10.2% in January-September 2017 and 16.4% in September 2017 from September 2016, which significantly exceeded its earlier forecasts.

"The new inflation forecast and a time horizon for the return of inflation to the target with the help of monetary tools will be announced after an NBU board meeting on monetary policy on October 26, 2017," the NBU said on Tuesday.

As reported, the National Bank at the end of January 2017 adjusted the inflation forecast for the current year from 8% to 9.1% with the benchmark ranging between 8% +/- 2 percentage points. It has not changed the forecast until recently, only pointing to growing risks that it may not be fulfilled. According to the NBU's projections, inflation in the year-on-year terms should return to a one-digit number in the fourth quarter of 2017.