The National Bank of Ukraine has raised the discount rate to 13.5% from 12.5% effective from October 27. The National Bank of Ukraine announced this in a statement, Ukrainian News Agency reports. According to the National Bank, the headline inflation accelerated to 16.4% year over year, which exceeded its forecast. "This was primarily driven by a quicker growth in raw food prices, higher production costs, and a revival of consumer demand," reads the statement. The central bank says prudent fiscal and monetary policies curbed core inflation. The FX market put no pressure on the inflation. "The September-October weakening of the exchange rate was mostly driven by situational factors and the impact that previous years' seasonality had on economic agents. Apart from that, the NBU smoothed out sharp fluctuations," reads the statement. After a lasting trend for improvement, inflation expectations deteriorated over the recent months. "Based on surveys conducted among households, banks, and financial analysts in September-October, the NBU observes an increase in the expected price growth rates for the following 12 months. The deterioration of expectations is driven by the current high growth rates of prices and the announced substantial increase in social standards," reads the statement. The next meeting of the monetary committee of the National Bank of Ukraine will take place on December 14, 2017. As Ukrainian News Agency earlier reported, on March 4, 2015, the National Bank of Ukraine raised the discount rate from 19.5% to 30%. For a while the central bank maintained the discount rate at the level of 30%. On August 28, the NBU reduced the discount rate to 27%, and on September 25 cut it to 22%. On April 22, the National Bank further reduced the rate from 22% to 19%, on May 27 - to 18%, and on June 24 cut it further to 16.5%. On July 29, 2016, the NBU reduced the discount rate from 16.5% to 15.5%, and on September 16, 2016 cut it down to 15%. On October 28, 2016, the NBU reduced the discount rate from 15% to 14%, in December 2016 and January 2017 kept it at that level, and in April 2017 dropped it further to 13%, and in May 2017 to 12.5%.