National Bank has issued an encouraging forecast for the inflation rate to the end of 2019
The national Bank predicts a gradual decline in inflation until the end of 2019.
As stated in the message controller, in the end of 2018, inflation rates should not exceed the level of 6% per annum. At the end of 2019 and in subsequent years this figure will be approximately 5%.
In this proposed set inflation target for each quarter:
March 2018 – 7.5% +/- 2%;
June 2018 – 7% +/- 2%;
September 2018 – 6.5% +/- 2%;
December 2018 – 6% ± 2%;
March 2019 5.75% +/- 2%;
June 2019 – 5.5% +/- 2%;
September 2019 5.25% +/- 2%;
December 2019 onwards – 5% ± 1%.
To achieve these purposes, the NBU will continue to use the discount rate.
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The conviction of the acting NBU Chairman Yakov Smoliy, to ensure low and stable inflation is possible only through the consistent implementation of monetary policy in inflation targeting regime.
In turn, the Deputy Chairman of the national Bank Dmitry Sologub added that the successes of previous years in reducing the level of inflation does not mean the achievement of the objectives. In particular, in 2018 and the medium term prices will push in the direction of increase a number of external and internal factors and risks.
Recall, the NBU has recorded that inflation in may in annual terms has accelerated in line with the April forecasts. In particular, the acceleration of inflation due to higher prices of raw products and higher rates for administratively-regulated services.
At the same time, gradually increased consumer demand. So, according to the NBU, an increase of the real wages of the population, including by raising the minimum wage from the beginning of the year.