Analysts expect Ukraine’s inflation to rise further in September

Kiev — Ukraine’s inflation probably accelerated further in September, boosted by soaring gas prices in external markets, but could slow by the end of 2021 thanks to government and central bank measures, Reuters said. A monthly survey showed on Thursday.

Inflation in September rose from 10.2% in August to 10.7% year-on-year, according to median forecasts by Ukrainian analysts. The best estimate was that it would rise to 11.5%.

Ukraine imports more than one-third of the gas it consumes and about half of its gasoline.

“Food and energy prices in the global market remain very high. An analyst at the Ukrainian subsidiary of Raiffeisen Bank, which participated in the poll, said in another report.

They said it “creates the additional risk of sustaining high inflation.”

In September, the central bank raised key interest rates from 8.0% to 8.5% with the aim of returning inflation to its target range of around 5%. This is the fourth increase in 2021.

The majority of members of the central bank’s Monetary Policy Committee believed that current interest rate levels were sufficient to reverse the upward trend in inflation.

Analysts surveyed by Reuters predict inflation will slow to 9.5% by the end of 2021 as a result of monetary tightening policies and the government’s decision to limit household gas and electricity prices until the end of the April heating season. I am.

Natalia Ginets