Da Vinci Analytic Group projects inflation in Ukraine at 17-18%

Thursday, May 12, 2016 - 21:03 (EEST) Section: Latest news

Analysts from the Da Vinci AG Analytic Group project inflation in Ukraine in 2016 at 17-18%.
The projection is given in the group`s Ukrainian Economic Trends Forecast for the second quarter of 2016.
This forecast is pegged to an increase in utilities  tariffs, namely gas, heating, power rates and sees the effect of the comparative base. It was updated with due regard for a forecast forex rate foreseen in the base-case scenario at UAH 28 per U.S. dollar by the end of the year, the analysts said.
”One should note again that the National Bank of Ukraine approved an inflation forecast for this year at 12%, and it has not been changed yet. Thus, the regulator once again pins its hopes on the extremely optimistic scenario (12%), which is unlikely to happen, especially against the backdrop of the increase in the utilities tariffs. In particular, the growth of prices of natural gas for households alone was by 48.4% in April, which contributes to monthly inflation most,” the report said.