News
06.09.2010
Ukraine. Inflation to exceed 10% in 2010, accelerate in 2011
Consumer inflation in Ukraine in 2010 may slightly exceed 10%, according to a forecast made by the National Bank of Ukraine (NBU).
In the second half of the year, inflation will grow because of higher administrative and regulated tariffs (by 21.2%, their growth totaled only 3.3% in the first half of the year). Core inflation will remain at the current level (7.7% in 2010) as a result of a still negative GDP gap. In 2011, inflation will slightly grow, to 11%, due to the small grain harvest in 2010 and the continuation of the process of increasing the administrative and regulated tariffs. However, core inflation will slightly rise as a result of a gradual reduction in a negative GDP gap.
NRCU
