Forecast 2018: inflation will get out of control of the National Bank

Inflation in October was 14.6% (until the previous year) and 11.5% (by December 2016). The acceleration of price growth in recent months is partly seasonal, partly because of the minimum wage increase at the beginning of the year. Nominal salaries of the Ukrainians grew on average by 37% (during 9 months), which contributed to the revival of demand and finally led to higher prices.

Next year, UIF experts expect the preservation of inflationary pressure. Under realization of UIF base scenario, inflation at the end of 2018 will be 10-12%, which is higher than the NBU target of 7.3% (December 2018 compared to December 2017).

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