Consumer price inflation slowed in June 2015, having slipped to 0.4% compared to 2.2% in May. But the inflation rate of 57.5% is still high on a year-over-year basis. In the NBU experts’ opinion, the consumer prices will soar up to 48%, the press-office of the NBU reports.
Currently, nearly all factors have a positive impact on the inflation rate entailing its drop, namely:
- strengthening of the hryvnia and effects of devaluation fast fading away;
- a decrease in inflation expectations;
- economic activity is still below potential output;
- a fall in prices of raw materials;
- export opportunities constrained due to trade restrictions imposed by Russia;
- tough monetary and fiscal policy.
Moreover, additional factors that caused inflation to drop in June were seasonal supply of fruit and vegetables and increase in prices for housing services that slowed.
"That's why we expect a significant slowdown in inflation in the next year - up to 12% at the end of 2016," the statement says.
