Massive Inflation is Coming to Ukraine by the End of the Year, Says the National Bank

For the first time this year the National Bank stated that the price decrease will come to an end this fall - by the end of the year they expect 4-5,5% inflation.

In the nearest months Ukrainians will see price increase causedby seasonal factors and possible growing prices in the world foodmarket, reports the National Bank of Ukraine.

Experts reacted to the NBU statement differently, but tend tothink that there will be no economic cataclysms this year.

"The National Bank states what will most probably happen and it isdoing the right thing. It decreases a certain commotion and thepopulation's inflation expectations, warning the people that by thefall everything will be more expensive, so it comes as no surprise.And it also explains why it will happen like it is done in Europe",says Forex Club CEO Nikolay Ivchenko.

The reason for growing prices is the appreciation of oil andfood products in the world and traditional fall hike of businessactivity. It will have only positive influence on the economics ofUkraine. In Ivchenko's opinion, the inflation this year is expectedto be no higher than 5.5% (as of right now we have price decreaseof 0.1% from December, 2011).

The President of Ukrainian Analytical Center Aleksandr Ohrimenkonotes that the inflation will be also stimulated by thepre-election increase of pensions, government wages, and welfarepayments. The National Bank has realistically evaluated thesituation realistically and carefully let people know that thebasis for the price growth is rather strong but not critical and bythe end of the year everything will be all right. The inflationwill be less than 4% and there is no sense to panic and buycurrency. Moreover, cheap vegetables will provide for officialdeflation of 0.1-0.3% in August and the prices will start growingonly in September.

Another analyst Aleksander Zholud thinks that the NBU has notreally said anything but simply reminded everyone that thesituation is under control: "The prices will start to go up - about1% in September. But this happens every year and by December wewill have inflation of less than 5%".

Источник: https://en.censor.net.ua/n215664