The National Bank of Ukraine (NBU) has said that risks of the larger deviation of inflation from the targeted range 8% plus/minus 2% at the end of 2017 compared to the figures of the July forecast of the central bank have increased.
“The current pace of the general consumer price index and its components shows that risks of larger deviation of inflation from the targeted range 8% plus/minus 2% as of late 2017 have increased. The fundamental inflation pressure will be moderate, and general inflation would reach the central point of the targeted range in Q2 2018,” the NBU said.
The regulator said that in August the consumer price index fell by 0.1% MoM (in July it grew by 0.2%) thanks to seasonal decline of prices of vegetables and fruit, clothes and shoes. In annual terms consumer inflation was 16.2%. The fundamental inflation pressure remained moderate, while underlying inflation slightly accelerated: underlying consumer price index grew by 0.2% MoM and by 7.8% YoY.
According to the proposals of the NBU Board to the key principles of monetary and credit policy of Ukraine for 2018 for medium term outlook, the targeted range by late Q2 2018 will be 7% plus/minus 2%. (Interfax-Ukraine/Business World Magazine)