The National Bank of Ukraine (NBU) reported that inflation has slowed to 6.9% in annual terms, remaining below the projected expectations the regulator published earlier.
The reduction in inflation has been attributed to a sharper-than-expected slowdown in annual core inflation and a steeper decline in raw food prices, according to a posting on the NBU`s website.
The regulator noted that a decline in the core consumer price index (CPI) and a decrease in raw food prices has offset greater administered prices and tariffs, which encouraged inflation.
”Current CPI and its components` developments suggest that the end-year headline inflation target of 12% y-o-y +/-3 pp remains within reach,” the posting reads.
As UNIAN reported earlier, a reduction in inflation of 0.2% was recorded in Ukraine in June, as compared to May, following May`s reported inflation of 0.1% month-over-month. In annual terms, inflation in June 2016 fell to 6.9% year-over-year (y-o-y), from 7.5% recorded in the previous month. Since the year began, consumer prices in Ukraine have risen by 4.9%.
The NBU forecasts a slowdown in inflation in Ukraine to 12% by the end of 2016. The International Monetary Fund had earlier predicted inflation in Ukraine would reach 15.1%, while the World Bank anticipated inflation of 15%.
According to an expert consensus forecast compiled by UNIAN, this year`s inflation is projected to slow to 19%. The 2016 state budget of Ukraine assumes an annual inflation rate of 12%, and a hryvnia exchange rate of about 24.1 UAH per dollar.
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