NBU governor predicts 17-19% inflation in 2014

NBU governor predicts 17-19% inflation in 2014

The inflation in Ukraine could increase this year to 17-19% under the influence of devaluation of the national currency and growing regulated tariffs, said NBU Governor Valeriya Hontareva during the live link-up at the Investment Conference in London, organized by Concorde Capital.

The regulator is currently switching to a new for the country policy of flexible exchange rate and inflation targeting as the previous policy of fixed rate periodically caused sharp devaluation of the national currency, she said. Transition to the inflation targeting policy will be gradual, approximately over 12 months, specified Hontareva.

She noted that the advantages obtained by exporters as a result of the last hryvnia devaluation will be reduced by inflation growth and therefore they should not be overestimated.

As Capital reported, core inflation in Ukraine slowed down in May 2014 to 2.3% from 2.8% in April. At that, on an annualized basis (compared with the same month of the previous year) core inflation in May grew to 7.5% from 5.1% in April 2013 and 2.1% in March.

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