The National Bank of Ukraine has improved its forecast for the consumer price index for 2024 from 9.8% to 8.6%. This was discussed at a briefing on monetary policy, Ekonomichna Pravda reports.
Inflation is expected to remain within the target range of 5% ± 1 pp in the coming months. From the middle of the year, it will accelerate as the effects of last year's high harvests wear off.
Additional pressure on prices will come from a further recovery in consumer demand and the transfer of business costs to consumer prices, in particular due to still high security risks and rising wages.
At the same time, the NBU expects inflation to remain under control and reach 8.6% by the end of the year.
"In 2025, inflation will return to the target range, slowing to 5.8% by the end of the year, and to the 5% target in 2026. This will be driven primarily by a reduction in security risks assumed in the forecast. This will lead to an overall improvement in expectations and will also help to streamline logistics and production processes. The NBU's interest rate and monetary policy measures will also remain important factors in reducing price pressure," the NBU added.