Economy 2021-10-15T05:01:17+03:00
Ukrainian news
Economy Ministry Forecasts Acceleration Of Inflation In Early 2021

Economy Ministry Forecasts Acceleration Of Inflation In Early 2021

Economy Ministry, forecast, inflation, deflation, consumer prices, inflation forecast

The Ministry of Economy, Trade and Agriculture forecasts that inflation will accelerate in early 2021.

This is stated in the materials of the ministry, Ukrainian News Agency reports.

In August 2020, as expected, consumer prices continued to decline due to seasonal factors.

At the end of the month, deflation amounted to 0.2% (deflation in July - 0.6%).

However, on an annualized basis, the rise in prices slightly accelerated to 2.5% (2.4% in July), which was mainly a consequence of the August increase in the cost of utilities (due to a significant rise in the price of natural gas by 37.7%).

At the same time, the increase in prices since the beginning of the year amounted to 1.2% and was a record low for recent years.

“In the future, we should expect that the process of gradually saturating the economy with money in order to revive it will obviously form more significant pressure on price dynamics as a result of the cumulative effect, which is likely to significantly manifest itself only at the beginning of next year,” the ministry noted.

As Ukrainian News Agency earlier reported, the National Bank notes that inflation remains below the target range of the central bank.

In January-August, inflation was 1.2%.