In April, inflation rate in Ukraine was at 15.9%, and it may exceed 20% by the end of the year.
"We have a significant level of price rise but it is controlled. And such indicators cannot be compared with 2015 when inflation reached 60% in some months," Governor of the National Bank of Ukraine Kyrylo Shevchenko wrote in his op-ed for NV Business.
According to him, the NBU has significant experience in fighting inflation.
As Shevchenko noted, there have been no cases in world history when a country entered a state of war with such a highly developed financial system and monetary policy.
"As long as market mechanisms have a limited impact on the market, we will contain price rise by fixing the exchange rate and keeping some restrictions in place. But as soon as monetary transmission channels work and uncertainty subsides, we will return to the inflation targeting regime which once helped to overcome the mentioned inflation of 60%," the NBU governor explained.
As reported, consumer inflation in 2021 was at 10%.
In February 2022, year-over-year inflation rate accelerated to 10.7% (from 10% in January). On a monthly basis, prices went up 1.6%.
On February 24, the Russian Federation launched a new phase of the eight-year war against Ukraine – a full-scale invasion. Russian invaders shell and bomb peaceful Ukrainian cities, towns, and villages, torturing and killing civilians.