Ukraine's Central Bank / Photo from UNIAN
A higher than expected increase in prices of raw foods and fuel was the main cause behind the growth of inflation.
The actual inflation in Ukraine in February 2018 from February 2017 was somewhat higher than the Central Bank's benchmark announced in January 2018.
"In general, the current dynamics of consumer inflation and its components indicate that inflationary pressure remains significant. At the same time, its amplification in February was curbed by the strengthening of the hryvnia, which continues in the first half of March," the NBU said in a comment on a report by the State Statistics Service of Ukraine saying that consumer inflation in February 2018 slowed to 14% compared to February 2017 against 14.1% in January 2018 compared to January 2017.
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The National Bank noted this is primarily due to a higher than expected increase in prices of raw foods and fuel.
The National Bank stresses that monetary conditions are strong enough to ensure a gradual decline in consumer inflation and its return to the target in the middle of 2019.
As UNIAN reported, the National Bank from March 2 raised the refinancing rate to 17% per annum, which was an increase for the fourth time in a row after it was raised to 16% in January 2018, 14.5% in December 2017 and 13.5% in October 2017. The record high key policy rate fixed at 30% per annum was effective in Ukraine from March 4 to August 28, 2015.
Inflation in Ukraine in February 2018 slowed to 14% from February 2017 against 14.11% in January 2018 from January 2017. The National Bank predicts a decrease in inflation in Ukraine at the end of 2018 to 8.9%, which almost corresponds to the government's forecast set at 9%. According to the current forecasts of the International Monetary Fund and the World Bank, inflation in Ukraine this year will slow to 7%.