Date: 6 months ago   Category: Financial

The National Bank explained what helped to contain increase in prices


Despite delay of growth rates of the prices, inflation in 2018 exceeded the forecast of the Central Bank. Following the results of 2018 inflation exceeded the forecast because of growth of administratively regulated prices and tariffs and also because of growth of production expenses against the background of increase in salaries. The press service of National Bank on Friday, January 11 reports about it. "Consumer inflation slowed down from 13.7% in 2017 up to 9.8% in 2018, according to Gosstat. It demonstrates to an inflation growth trend turn which was observed in 2017, and weakening of fundamental inflationary pressure upon the Ukrainian economy. It occurred first of all thanks to tough monetary policy of National bank", - it is said in the statement. At the same time, despite the expected decrease, following the results of a year inflation it is expected exceeded the purpose of the NBU of 6% ± 2 items for the end of 2018. "To develop a trend of growth of inflation and to reduce inflation to unambiguous level following the results of a year for the first time in five years first of all the tough monetary policy of National bank helped. Gradual increase in discount rate began since October, 2017 taking into account strengthening of inflationary risks. Within last year for decrease of the inflation rate in target reference points in the medium term Board of National bank four times raised discount rate - on only 3.5 points to the current 18% per annum. It caused increase in interest rates and, respectively, gave incentives for increase in savings. Besides, it led to strengthening of hryvnia exchange rate to currencies of the countries - the main trade partners of Ukraine", - added in the press service. Also delay of inflation took place thanks to favorable price tactical for the Ukrainian export in foreign markets in the first half of year and to a record harvest grain in the second half of the year which supported the high offer of currency in the interbank currency exchange market and also created conditions for strengthening of hryvnia exchange rate. Extension of the internal offer of separate food thanks to a big crop of fruit and olive, increase in production of poultry farming and also decrease in the world prices for food was additional factors. At the same time inflation following the results of a year deviated the purpose mainly because of action of factors on which the monetary policy has limited influence. It is first of all about increase in administratively regulated prices and tariffs, growth of production expenses under the influence of increase in the salaries, increase in the world prices for oil during the most part of year and also narrowing of the offer of vegetables of borshchovy set because of adverse weather conditions. The consumer demand which grew thanks to increase in salaries was the important driver of inflation also. In January-November, 2018 real salaries were 12.8% higher in comparison with the same period of 2017, note in the NBU. Also during the most part of year important factors which influenced economic moods were uncertainty concerning renewal of cooperation with Mezhd

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