The National Bank of Ukraine increased its end of year inflation forecast to 12.2%

The National Bank of Ukraine increased its end of year inflation forecast to 12.2%
/ bne IntelliNews
By bne IntelliNews December 14, 2017

The National Bank of Ukraine (NBU) has increased its end of year forecast for inflation, which has been driven higher by food and a big hike in minimum wages at the start of the year.

The NBU expects consumer price inflation (CPI) in 2017 to grow more than the earlier forecasted 12.2%, according to the central bank's website. 

November’s CPI was 13.6% y/y in November from 14.6% in October. Year to date inflation is 14.5%, the service said. In monthly terms inflation fell slight: CPI increased by 0.9% m/m in November vs a 1.2% m/m increase in October, the State Statistics Service of Ukraine reports.

"The growth of the consumer price index and its components in November exceeds the forecast in the Inflation Report for October 2017 and shows that by the end of 2017 the index growth will deviate more significantly from the target than previously expected," the report said, cited by Interfax.

According to the National Bank, the actual level of inflation in November remains higher than forecasted because of a higher than expected growth in food prices.

The NBU worsened the inflation forecast for 2017 to 12.2% from 9.1% in late October, but the central bank’s inflation target remains unchanged at 8% +/- 2 percentage points at the end of the year.

Together with the forecast for 2017, the NBU worsened the forecast for inflation for 2018 to 7.3% from 6%.

Data

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