The regulator has named three main reasons, Hubs reports.
The National Bank of Ukraine (NBU) explained the slowdown of inflation in May by hryvnia strengthening and weak consumer demand, the regulator’s comments say.
As NBU emphasizes, within a month the price dynamics was determined by an overall trend to weakening of inflation pressure as well as correction of administratively regulated tariffs.
“The overall trend on weakening of inflation pressure was evidenced by reduction of core inflation to 0.2% on a month-on-month basis and 8.8% on year-on year basis somehow faster than it was expected. The slowing down of core inflation was determined by hryvnia strengthening as well as weak consumer demand and effects from lowering prices for separate raw food products”, the National Bank reports.
In May the inflation decreased to 0.1% versus 3.5% in April. In total, for the first five months of 2016 the consumer prices increased by 5.2% in Ukraine.
The state budget for 2016 envisages the inflation growth at 12%. As per NBU data, the consumer inflation slowed down to 9.8% on a year-on-year basis. Meanwhile, the last forecast of the Ministry of Finance of Ukraine for 2017 envisages the GDP growth at 3% with inflation of 8.1% and USD rate of 27.2 UAH/$.
