By year-end, NBU forecasts the inflation slowdown to 8.9%.

The May inflation indicator appeared to be slightly lower than NBU’s forecast trajectory.

In May, on a year-on-year basis, the inflation decrease up to 11.7% (versus 13.1% in April) was determined by the rapid slowdown of the growth of food prices, according to the message of the National Bank, Correspondent.net reports.

“On a year-on-year basis, the further inflation decrease was expected, and its May indicator appeared to be slightly lower than NBU’s forecast trajectory. It happened mainly due to the rapid development of the slowdown in food price growth”, according to NBU message.

In addition, the regulator noted that the administratively regulated prices did not increase as quickly as in April due to slowdown of the growth of tobacco product prices and more moderate housing and utility rate increase versus the last year.

NBU also paid attention to the gradual exhaustion of impact of temporary factors of the supply, which caused the growth of consumer inflations in the second half of 2017 and within the first months of the current year.

“It happens as the result of more favorable weather conditions in this year versus spring frosts last year, as well as the extension of import product supplies. The additional factor is the implementation of the stringent monetary policy by the National Bank, which developed, first of all, through strengthening of hryvnia exchange rate from late January 2018”, according to the message.

Meanwhile, NBU added that as in previous months, in May, the pressure on prices from the further growth of production costs, in particular, on labor remuneration, as well as the quick renewal of consumer supplies, kept in May.

Previously, the National Bank reported that by the year-end, the inflation should decrease lower than 10%.