Inflation will return to the target range by the end of the year, as a result of high domestic demand and further easing of the NBU's monetary policy.
The National Bank of Ukraine (NBU) says a slowdown in inflation in January 2020 to 3.2% in annual terms was expected, and that it corresponds to the forecast.
The inflation rate will be below the target range of 5% plus/minus 1 percentage point within the next months, still reflecting the effect of last year's hryvnia appreciation, lower global energy prices, and eased pressure from the supply of certain food products, the regulator said on its website on February 11.
"However, by the end of the year, inflation will return to the target range as a result of high domestic demand and further easing of the NBU's monetary policy," the report said.
As UNIAN reported earlier, inflation in Ukraine in January 2020 amounted to 3.2% year-on-year, slowing down from 4.1% in December.
In late January, the National Bank revised downwards its forecast for consumer price growth in Ukraine in 2020 to 4.8% from 5% previously projected.
The national budget of Ukraine for 2020 is based on the government's macroeconomic forecast with an inflation rate of 5.5%.