The upward trend in inflation will continue.
In April 2022, the growth of consumer prices accelerated to 16.4% on an annualized basis. And this trend will continue in the coming months. This is stated in the press service of the NBU.
It is specified that, despite the gradual recovery of the economy, the trend of accelerating inflation will continue in the coming months. This will threaten to worsen inflation expectations and the flow of hryvnia savings into foreign currency.
The National Bank intends to respond to curb inflation, including the need to raise or lower interest rates.
“At the same time, the NBU's return to an active interest rate policy will help prevent these negative trends,” the NBU said. High world energy prices also remain a significant pro-inflationary factor and put pressure on consumer inflation both directly and indirectly due to rising production costs.
Inflation rates are reaching record levels in the world, in particular in the euro area and the United States – more than 8% year on year. It also fuels rising domestic prices.
According to the NBU, some recovery in economic activity, the gradual adjustment of logistics, increasing supply to both domestic producers and importers slowed the acceleration of inflation. Relatively low demand and surplus of agricultural raw materials also restrained rising prices.
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Earlier it was reported that the board On June 2, the National Bank decided to raise the discount rate to 25% . ZN.UA praised the NBU's decision: “Didn't the NBU raise the rate too sharply? No, this is more of a positive signal to other players that it will not increase further, and this level can be used. This approach is more transparent than a slow increase of half a week especially since, along with the devastation in the real sector, the financial mechanisms in the economy have also collapsed, “subtle” settings could now simply not work. “
