Reducing Inflation in Ukraine to 6,2%

Thursday, September 16, 2021
Reducing Inflation in Ukraine to 6,2%

According to the forecasts of the country's government, a slowdown is foreseen by the end of 2022

The consumer price index will be equal to 6,2% compared to the same period in 2021 and 7,2% to the average in 2021.

“In 2022, it is predicted that the growth of domestic prices in the consumer market will slow down to 6,2% (December to December), followed by a downward trend. Stabilization of inflation rates at a low level will create additional opportunities for more intensive integration into the systems of financial and industrial relations of the European market on a profitable parity basis,” said in an explanatory note to the draft state budget for 2022.

The increase in inflation imports in Ukraine may be triggered by the continuation of inflation in other European countries. It is also noted that an indicative factor in 2021 was the acceleration of the inflation rate in the country.

“Compared to August last year, the growth in consumer prices amounted to 10,2%, which is the highest value since May 2018. At the same time, core inflation also accelerated to 7,2%. Such dynamics is mainly due to the growth of world prices for food and energy resources, stimulates both a direct increase in prices for these goods in Ukraine and an increase in production costs of enterprises as a result of the growth in the cost of raw materials and energy,” add the State Budget for 2022.

Among other things, a positive realization of the percentage of consumer demand slowed down by the pandemic was recorded and compensation for losses incurred by the quarantine business.

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