Ñonsumer inflation to be at 12% in 2016 and 8% in 2017 - NBU
The National Bank of Ukraine (NBU) maintains its forecast for consumer inflation at 12% in 2016 and 8% in 2017 despite of a faster-than-expected slowdown in inflation in the first quarter, according to an NBU report.
"Most of the factors that contributed to the rapid deceleration of inflation in January-March 2016 are short term in nature, and their impact will be offset in the following periods. The return of the inflation figure to the target values will be supported by a rise in prices in the world commodity markets," the central bank said.
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The NBU indicates that such inflation forecasts are consistent with the objectives of its monetary policy.
With regard to the dynamics of Ukraine's economy, the National Bank confirmed its assessment of its growth in 2016 at 1.1%.
"On the one hand, the National Bank's expectations for price dynamics in the world commodity markets have improved. On the other hand, the beneficial effect of this factor might be offset by the deterioration of business expectations and investors' sentiment in case of delay in the resumption of cooperation with the International Monetary Fund (IMF)," the NBU said.