Ukraine’s central bank expects inflation to speed up to 19% by end of 2014.

By bne IntelliNews September 21, 2014

The inflation is expected to grow by 19% by the end of 2014, the press service of the National Bank of Ukraine (NBU) has announced. The reduction of the exchange rate, the growth of administratively regulated prices and tariffs as a result of urgent economic reforms, as well as the worsening of market expectations, have influenced the price dynamics, the central bank said. In 2015, the government forecasts inflation will slow down to 8.7%-9.8% y/y.

In August, the CPI inflation in Ukraine accelerated to 14.2% y/y compared to 12.6% y/y inflation seen in July, the State Statistics Service has announced. In m/m terms, consumer prices rose by 0.8%. In August, prices for foodstuffs and soft drinks fell by 0.1% m/m, for clothes and footwear fell by 0.8% m/m, for housing municipal services rose by 1.6% m/m, for health care services rose by 1.5% m/m; and for education services rose by 0.1% m/m. In Jan-Aug, the inflation was 12.9%.

The National Bank of Ukraine has decided to raise the discount rate from 9.5% to 12.5%, effective July 17, the NBU press service has informed. The NBU notes that the difficult macroeconomic situation, the weakening of the hryvnia and reforms planned by the government pose risks to price stability. Thus in order to curb inflation and keep the monetary market balanced, the National Bank's board believes it necessary to take steps to raise the domestic value of the national currency through the use of interest rate policy levers. This step, along with other stabilization measures, will help make bank deposits more attractive and positively influence Ukraine's forex market, the NBU said.

Related Articles

London High Court throws out Ukraine’s bond case against Russia

The High Court in London on March 29 ruled that it would not be right for a $3bn Eurobond case brought by Russia against Ukraine to go to full trial since Kyiv has no “justifiable defence” for ... more

Russia's Sberbank selling its Ukrainian subsidiary

Russia’s largest bank Sberbank is selling its subsidiary in Ukraine to a consortium of investors that includes Latvia’s Norvik Bank and a private Belarusian company, Sberbank said in a statement ... more

20,000 people evacuated as "sabotaged" munitions store burns in Ukraine

About 20,000 people have been evacuated following explosions at Ukraine's largest arms depot in Balakliya near the eastern city of Kharkiv after what was claimed to be an act of sabotage. The base ... more

Register here to continue reading this article and 2 more for free or purchase 12 months full website access including the bne Magazine for just $119/year.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

To continue viewing our content you need to complete the registration process.

Please look for an email that was sent to with the subject line "Confirmation bne IntelliNews access". This email will have instructions on how to complete registration process. Please check in your "Junk" folder in case this communication was misdirected in your email system.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

If you have any questions please contact us at sales@intellinews.com

Subscribe to bne IntelliNews website and magazine

Subscribe to bne IntelliNews website and monthly magazine, the leading source of business, economic and financial news and commentary in emerging markets.

Your subscription includes:
  • Full access to the bne content daily news and features on the website
  • Newsletters direct to your mailbox
  • Print and digital subscription to the monthly bne magazine
  • Digital subscription to the weekly bne newspaper

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

bne IntelliNews
$119 per year

All prices are in US dollars net of applicable taxes.

If you have any questions please contact us at sales@intellinews.com

Register for free to read bne IntelliNews Magazine. You'll receive a free digital subscription.

Already a subscriber or registered - click here to recover access.

If you a IntelliNews Pro user - click here to login.

Thank you. Please complete your registration by confirming your email address.
A confirmation email has been sent to the email address you provided.

IntelliNews Pro offers daily news updates delivered to your inbox and in-depth data reports.
Get the emerging markets newswire that financial professionals trust.

"No day starts for my team without IntelliNews Pro" — UBS

Thank-you for requesting an IntelliNews Pro trial. Our team will be in contact with you shortly.

Dismiss