The level of consumer prices will peak in the summer of 2021, then there will be a reversal—inflation will begin to slow down and return to the range set by the National Bank.
This was announced by the Deputy Governor of the NBU Yuriy Heletiy, Ukrinform reports.
"In mid-2021, the rise in consumer prices will peak, but in the future, inflation will begin to slow down and return to the target range in the first half of 2022," Heletiy said.
He recalled that in January inflation accelerated and went beyond the target of 5% +/- 1% and continued to accelerate.
"According to the preliminary estimates of the National Bank, inflation continued to accelerate also in February," Heletiy noted.
According to him, the acceleration of inflation was most influenced by food and fuel prices. Inflationary pressure from Ukraine's trading partners has also increased. The rise in prices is supported by stable domestic consumer demand. The rise in prices is also stimulated by the effect of last year's weakening of the hryvnia.
Apparently, the increase in the discount rate that the NBU did not touch for almost two years, is connected with the acceleration of inflation.
According to the NBU forecast, consumer inflation by the end of 2021 will be 7%.