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The National Bank of Ukraine (NBU) maintains its outlook for headline inflation in Ukraine in 2016 at 12%, while downgrading its forecast for core inflation to 9.2%.
"According to the baseline scenario, headline inflation is projected at 12% y-o-y at the end of 2016, unchanged from the previous forecast, while the outlook for core inflation was revised slightly downwards to 9.2% y-o-y," the regulator reported in its January inflation report, published on the NBU website.
Inflationary pressures will be dampened by low world food prices amid limited export ability due to new trade restrictions, declining inflation expectations, and the fading effects of depreciation, according to the report. The difference between the headline and core inflation will largely reflect a further increase in state-regulated tariffs, although not as significantly as in 2015, the NBU noted.
Read alsoIMF postpones allocation of $1.7 bln to Ukraine – mediaThe NBU forecasts headline inflation at 8% y-o-y by the end of 2017.
As UNIAN reported earlier, Ukraine's key creditor, the International Monetary Fund, forecasts GDP growth in Ukraine this year at 2% and inflation at 12%.
According to the UNIAN's expert consensus forecast, GDP growth is projected at 1%, while the industrial production is expected to grow by 3% and inflation may slow down to 19%.
Read alsoNational Bank worsens its economic outlook for UkraineThe budget deficit for 2016 is capped at 3.7%, and the hryvnia exchange rate projected at UAH 24.1 per dollar.