Core inflation has broken the record for the year

In annual terms, core inflation rose, and in a month, on the contrary, slowed down.

Underlying inflation in Ukraine in annual terms, i.e. compared to the same month last year in October accelerated to 8.1%. On a monthly measurement of core inflation in October slowed to 1.2 percent, after rising to 1.9% in September. This is evidenced by data of the state statistics.

Indicator 8.1% in annual terms, the highest since July of 2016.

Overall, since the beginning of 2017, core inflation rose to 7.5%, compared with 5.3%.

We will remind, earlier the national Bank of Ukraine (NBU) has sharply lowered its forecast for inflation. According to analysts, the NBU, the inflation growth have contributed to strong recovery in consumer demand, a sharp increase in pension payments and minimum wages, as well as excise taxes on tobacco products. In this context, the inflation forecasts of the regulator and has been revised.

In NBU believe that the decline in inflation in 2018 or 2019 from the current level will be due to the rather tight monetary policy, the weakening effect of a sharp rise in food prices and moderate volatility in the exchange rate.

Core inflation excludes short-term irregular price changes under the influence of individual factors which were administrative, event and seasonal in nature. Core inflation is that part of inflation which is directly dependent on monetary policy and exchange rate policy.

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