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NBU forecasts higher inflation due to the new pensions

НБУ прогнозирует ускорение инфляции из-за новых пенсийNew state pensions this year may need an additional 20 billion hryvnia.

Modernizing pensions will inevitably push inflation can grow 0.3 – 0.6 points in the following year. The corresponding forecast provided by the national Bank of Ukraine.

“Given that the effects on the budget from increased spending on pensions will be offset by other items (the budget deficit remains less than 2.5% of GDP in 2017 and 2018), by estimations of the National Bank and the increase in pensions will have a neutral impact on real growth rate of the economy, but will result in moderate pressure on consumer prices (in addition to 0.3-0.6 percentage points to annual consumer inflation in 2018)”, – stated in the message.

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The national Bank also draw attention to the fact that the modernizing of pensions in the fourth quarter of 2017, you may need an additional 20 billion.

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