The NBU explained the excess of predicted regulator of the rate of inflation independent of his factors

The NBU pledged on January 25 to present a new macroeconomic forecast

Photo: EPA

In 2017 the level of inflation in Ukraine exceeded the expectations of the National Bank (NBU) due to the action of a number of independent regulator factors, reported the press service of the NBU.

According to the state service of statistics, in 2017, consumer price inflation was 13.7%. The national Bank projected 8% ± 2 percentage points at the end of the year.

“Inflation for the year have deviated from the target mainly due to factors for which the national Bank could not influence through monetary policy instruments. We are talking primarily about the reduction in the supply of certain goods due to adverse weather conditions in the first half of the year, the unstable situation in animal husbandry, the rise in world prices and external demand for domestic food products (particularly meat and dairy groups). Also on the rise in prices affected by the increase in production costs, in particular labor costs, and the rapid recovery of consumer demand”, – explained in the national Bank.

Infographics: bank.gov.ua

It is reported that underlying inflation by the end of 2017 accelerated to 9.5% compared to 5.8% in 2016.

“So much went services included in core inflation, due to rising production costs and the revival of consumer demand, including due to the increase in the minimum wage and pension payments. In particular, most significantly on the rate of inflation was affected by the rise in price of services of fast food, higher education, maintenance of adjoining areas”, – said the NBU.

It is noted that accelerated growth of prices for food products with a high degree of processing. At the same time, the growth rate of prices of food commodities was lower than last year.

“Rising prices for raw food products in 2017, significantly accelerated (to 23.5%) compared to the previous year and provided the main contribution to consumer inflation. In particular, rapidly increased the prices of meat and milk, there has been a rise in the price of eggs”, – stated in the message.

The national Bank added that in the past year, rapidly increased the prices of vegetables and fruits, after falling in 2016, the price of sugar continued to decline.

Infographics: bank.gov.ua

The press service of the regulator said that the deviation of actual inflation from targets of cantoblanco is an integral part of the inflation targeting regime.

The NBU pledged on January 25 to present a new macroeconomic forecast.

In the state statistics service reported that more than consumer inflation in 2017 was affected by the rent increase (47.5 per cent), higher prices of fruit (34.5 per cent) and meat and meat products (29.4 percent).

The national Bank predicted that by the end of 2018, inflation reached 7.3%. Initially this indicator was planned at the level of 6.0%, but was changed to reflect the increase in the minimum wage in Ukraine.

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