The expert lists two key inflation drivers / Photo from UNIAN
An expert says food price hikes and the deficit of the national budget are behind inflation in Ukraine now.
This opinion was shared by Director of the Institute for Development of Territories Yuriy Hanushchak on TV Channel Ukraina 24.
According to him, the National Bank "did what it had to do," i.e. it raised the key policy rate, so now prices have slowed.
"We must be aware that Ukrainians spend a huge part of their money on food, prices are objectively growing. Therefore, our inflation has been growing faster than in other countries. And another source of inflation that will surely give a blow is an exorbitant budget deficit. Most likely, they will start printing more money," the expert said.
Earlier, the State Statistics Service announced that consumer inflation in Ukraine in April 2021 in annual terms, compared to April 2020, was 8.4%, slowing down from 8.5% in March 2021.
Other related news reports
- Ukraine sees 7.5% inflation Feb 2021
- World Bank predicts mild recovery of Ukraine's economy in 2021
- IMF publishes outlook for Ukraine economy until year-end
- National Bank again raises key policy rate to combat inflation
- Ukraine's economy ministry projects GDP growth at 4.1% in 2021, 3.7% in 2022
Translation: Akulenko Olena