They hid inflation: NBU explained how the Ukrainian economy will recover in 2023

According to the Central Bank, the growth of consumer prices in Ukraine slowed to 5.1% by the end of 2023.

Inflation decreased in 2023, thanks to the measures taken by the National Bank of Ukraine (NBU) to support exchange rate stability. This was reported by the press service of the state regulator.

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Thus, according to the NBU, consumer prices in Ukraine slowed growth to 5.1% last year, although inflation reached 26.6 percent in 2022 at the peak of the full-scale occupation of the Russian Armed Forces in Ukraine. %.

“The rapid decline in inflation in 2023 was achieved by the NBU’s measures to support exchange rate stability, which contributed to the improvement of prospects, a moratorium on increasing certain tariffs for housing and communal services, sufficient supply of food products and the decline. “In world energy prices,” the Central Bank said.

In 2024, inflation in Ukraine is expected to remain at a moderate level, as expected by the Central Bank. Thus, a number of measures taken by the regulatory body to support the stability of the foreign exchange market made it possible to reduce the underlying inflationary pressure. Therefore, price increases on a wide range of products containing imported components will be limited.

In addition, the fixation of tariffs for certain housing and communal services limited the increase in administrative prices.

The NBU also notes that food inflation has fallen significantly, thanks to good harvests and increased supply of food products. These factors have outweighed the effects of increased price pressures resulting from higher electricity prices and operating production costs due to higher wages.

“Moderate inflation is expected to continue in 2024. For this purpose, NBU will continue to follow policies aimed at maintaining stability in the foreign exchange market. However, the risk of increasing inflation pressure in 2024 continues, mainly due to the impact of global inflation.” war,” stressed the Central Bank of Ukraine.

What will be more expensive in Ukraine in January

Although inflation has slowed somewhat, official and cash interest rates have changed in Ukraine. Therefore, experts believe that the devaluation of the hryvnia will cause an increase in prices of computers and household appliances. Price changes will also affect fuel.

“In January, inflation will most likely rise to 6.2% on an annual basis,” said Dmitry Churin, head of the analytics department at investment company Eavex Capital.

According to him, 2024 can be achieved without price shocks. However, it is important that there are certain conditions for this. First of all, we are talking about Western financial assistance.

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“It is critical that Ukraine receives the international financial assistance planned to close the budget deficit this year. So far, there is a pleasant strengthening trend in the domestic economy after the shock period of 2022 and the shock period of early 2023,” the expert said. .

Let’s remember this recently Focus wrote about ana Economic forecasts for 2024. Economist Vitaly Shapran, a member of the Ukrainian Financial Analysts Association, explained what difficulties await Ukraine in the new year.

Source: Focus

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