: :inin Kyiv (EET)

Inflation to not exceed 10% in coming months – expert


Annual inflation in the coming months will remain below 10%, but it is expected to accelerate toward the end of 2016 to 11% year-over-year, chief economist at Dragon Capital Olena Belan has told UNIAN commenting on statistical data on April inflation in Ukraine, stating that the growth in consumer prices slowed to 9.8% in annual terms.
According to Ms. Belan, these projections are based on expectations of moderate food prices, as well as the expected increase of heating tariffs at the end of the year.
The expert noted that in 2017 inflation will slow to 8 in annual terms.
She also reported that due to the nature of the gas price calculation, the second stage of tariff increase starting from May 2016, which eliminates preferential gas prices and, in fact, increases the weighted average price, will technically decrease in May 2016 a gas component in the consumer price index by 4%.
As UNIAN reported earlier, inflation in Ukraine in April 2016 accelerated to 3.5% compared with the previous month from 1% recorded March to February. In annual terms, April`s inflation slowed down from 20.9% to 9.8% recorded the previous month. Since the beginning of the year, in January-April, consumer prices in Ukraine rose by 5.1%.
The National Bank of Ukraine predicts a slowdown in consumer price inflation in Ukraine down to 12% by the end 2016, while the International Monetary Fund says it will be at 15.1%, and the World Bank predicts a 15% level.
According to the expert consensus forecast compiled by UNIAN, inflation will slow to 19% this year.
State Budget of Ukraine for 2016 assumed an annual inflation rate of 12% and the hryvnia exchange rate at about UAH 24.1 to the dollar.

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