World Bank: in 2019, the inflation in Ukraine will not exceed 7.3% of

Всемирный банк: в 2019 году инфляция в Украине не превысит 7,3%

The world Bank predicts a slowdown in inflation in Ukraine in 2019 to 7.3% and in 2020 to 6.5%.

About it reports RBC-Ukraine with reference to the world Bank Economic review in Ukraine.

The world Bank forecast, in 2018, the inflation in Ukraine will amount to 9.9%.

As noted in the publication, the national Bank of Ukraine pursues a policy of inflation targeting, however, its level remains high due to the increase of salaries and pensions. He reached the end of 2017 13.7% and therefore, he was higher than the benchmark, the NBU amounted to 8±2%.

The world Bank recalled that the NBU has gradually increased its key interest rate from 12.5% in may 2017 to 18% in September 2018.

“It helped to keep inflation at 9% in August to the corresponding month of the previous year, however, the cost of financial resources in the country has increased, and the need to increase energy tariffs in the future may put additional pressure on inflation”, – stated in the publication.

Recall that the draft budget 2019, which the government has submitted to Parliament envisages a real GDP growth of 3%, the increase in nominal GDP to 3946,9 billion, the consumer price index (December to December of the previous year) at the rate of 107.4%, the producer price index (December to December of the previous year) – of 110.1%.

Note, the NBU Board following the meeting of 6 September 2018 took the decision to raise the discount rate from 17.5% to 18%. All ten members of the monetary policy Committee (ILC) of the National Bank of Ukraine is ready to raise interest rates in the case of strengthening of inflationary risks.

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