World Economy

Ukraine Inflation to Reach 12%

Ukraine Inflation to Reach 12%Ukraine Inflation to Reach 12%

The National Bank of Ukraine maintains its outlook for headline inflation in Ukraine in 2016 at 12%, while downgrading its forecast for core inflation to 9.2%, UNIAN reported. “According to the baseline scenario, headline inflation is projected at 12% y-o-y at the end of 2016, unchanged from the previous forecast, while the outlook for core inflation was revised slightly downwards to 9.2% y-o-y,” the regulator reported in its January inflation report, published on the NBU website. Inflationary pressures will be dampened by low world food prices amid limited export ability due to new trade restrictions, declining inflation expectations, and the fading effects of depreciation, according to the report. The difference between the headline and core inflation will largely reflect a further increase in state-regulated tariffs, although not as significantly as in 2015.