NBU reviews upwards inflation forecast for 2018-2019
The National Bank of Ukraine (NBU) has reviewed upwards growth of consumer prices in 2018 to 10.1% from 8.9%, taking into account the fact that large inflation pressure remains and the regulated prices are increased, the central bank has reported on its website.
In addition, the forecast for 2019 has been reviewed upwards to 6.3% from 5.8%, for 2020 it has been kept at 5%.
The National Bank said that among the fundamental inflationary factors are the preservation of significant domestic demand and a further increase in production costs, including labor costs; the weakening of the hryvnia exchange rate to the U.S. dollar in July-August, which affected the value of certain goods; global oil price hikes in recent months, which affected the prices of fuel and, consequently, the cost of goods and services.
"These factors, as well as the upcoming bi-elections in Ukraine next year, have a negative impact on inflation expectations. In particular, confidence of Ukrainians has deteriorated," the central bank said.