The national Bank made the forecast on inflation

Inflation has affected the tobacco market, weather and exports.

The acceleration of inflation in Ukraine to 16.4% in annual terms was driven by the factors whose effect begins to weaken, therefore, the national Bank expects slowing down of inflation, said the Deputy head of the NBU Dmitry Sologub.

“This layering of three factors – the internal situation in the tobacco market, the weather plus the increase in export influenced four commodity groups. We evaluate what factors to consider when deciding on monetary policy and what Central Bank should not react”, – he said.

According to him, core inflation, which can control the Central Bank, the half year remains in the range of 6 to 8%: by the end of September amounted to 7.7%.

“The greatest contribution was the raw foods and goods, services, the prices of which are regulated administratively. That is the problem for the implementation of inflation targeting, which we discussed in a country with such a low income level in Ukraine is always in the consumer basket high share of food, and prices are volatile,” said Sologub.

Speaking about the projected slowdown in inflation, the Deputy head of the national Bank also reminded that last October, consumer prices rose by 2.8% due to the tariff increase. “It is difficult to imagine that the October figure will be higher, and this means that in annual terms in October, the inflation will go down,” said Sologub.

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