Ukraine’s inflation rises to 24.6% y/y in September

Ukraine’s inflation rises to 24.6% y/y in September
Despite hiking rates to 25% the NBU has not managed to curb inflation in Ukraine which rose to 24.6% in September / bne IntelliNews
By bne IntelliNews October 12, 2022

Ukraine’s inflation accelerated to 1.9% in September 2022 month on month from 1.1% in August and 0.7% in July, Ukrstat reported on October 9.

A year earlier inflation was 1.3% in September 2021, bringing the year-on-year inflation rate to 24.6% from 23.8% a month earlier, 22.2% in July and 21.5% in June. (chart)

Underlying inflation increased to 2.4% last month from 2.1% in August and 1.2% in July, reports Interfax.

Consumer price inflation (CPI) has increased by 21.8% in the first nine months of this year compared to the year previously. The National Bank of Ukraine (NBU) predicts that it will rise to 25.6% in the third quarter.

The NBU estimate for September’s inflation was slightly more mild at 24.4% in September, and may slightly improve its forecast for the full year from the previously announced 31%.

The International Monetary Fund (IMF) also predicted full year inflation this year ending at 30% in its October economic update. The development bank is also predicting a 35% contraction for the economy.

In 2021 inflation in Ukraine rose to 10% from 5% in 2020 and 4.1% in 2019, while underlying inflation rose to 7.9% against 4.5% a year earlier, Interfax reports.