Inflation slowdown in March is in line with forecast – Ukraine central bank

The slowdown in consumer inflation in Ukraine in March to 8.6% in annual terms practically corresponds to the forecast published in National Bank's inflation report for January.

As noted by the NBU, core inflation slowed down somewhat faster than expected, primarily due to the strengthening of the hryvnia exchange rate to the currencies of partner countries.

The current dynamics of consumer inflation and its components indicates a further weakening of inflationary pressure, the report reads.

Read alsoIMF keeps economic growth forecast for Ukraine in 2019 unchanged

The National Bank promises to continue to direct its policy towards slowing the pace of price growth and achieving the medium-term inflation target at the level of 5% plus/minus 1 percentage point.

It is also reported that the regulator will publish key indicators of the updated macroeconomic forecast on April 25.

As UNIAN reported earlier, inflation in Ukraine in March 2019 in annual terms – as compared with March 2018 - was at 8.6%, slowing down from 8.8% in annual terms in the previous month.

The state budget of Ukraine for 2019 is based on a macroeconomic forecast with real GDP growth of 3% and inflation at 7.4%.

The National Bank of Ukraine predicts a slowdown in inflation to 6.3% in 2019, the International Monetary Fund and the World Bank – to 7.3%.

According to the consensus forecast of experts polled by UNIAN, this year Ukraine is expected to slow down in consumer price growth to 7.2%.