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NBU improves inflation forecast for 2023

The forecast has improved by 2.3%.

NBU improves inflation forecast for 2023
Photo: ZN

The National Bank has improved its forecasts for inflation in Ukraine in 2023 from 21% to 18.7%, Ekonomichna Pravda has reported, citing a briefing by National Bank governor Andriy Pyshnyy.

"The National Bank forecasts a slowdown in inflation to 18.7% in 2023. This will be facilitated by maintaining tight monetary conditions, lower global inflation and weaker consumer demand in the face of power outages," Pyshnyy said.

For 2024, the National Bank forecasts a further slowdown in inflation to 10.4% (the previous forecast was for inflation below 10%), and for 2025 - 6.7%.

"The main contribution to inflation in these years will be made by the administrative component due to the need to bring tariffs for housing and utility services to market levels," the NBU explained.

In addition, the NBU governor added that lower inflation rates will be facilitated by the fact that Ukrainian businesses have managed to adapt to the challenges of the war.

The NBU has kept the key policy rate at 25%. At the same time, consumer prices increased by 26.6% in 2022.

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