REUTERS
The Ministry of Economic Development and Trade of Ukraine forecasts inflation at 7% in the first half of 2017, according to the analytical report published on the ministry’s website.
"In the first half of 2017, the trend of moderate price increase (about 7% in June 2017 compared to December 2016) is expected to continue, which is due to seasonal factors and a significant expansion in the effective demand of the population, as well as an increase in excise taxes on alcoholic beverages, which will continue to influence the process in the coming months," the report says.
Read alsoNBU confirms Donbas trade blockade affects GDP forecastAt the same time, the ministry’s experts call the main risks the increase in world prices for food products, higher of energy costs in the economy, as well as the renewed negative inflationary expectations of the population against the backdrop of a "soft" devaluation of the hryvnia.
As UNIAN reported earlier, the inflation in Ukraine in March 2017 compared with March 2016 accelerated to 15.1%, and compared to February 2017 - up to 1.8%. Since the beginning of the year (compared to December 2016), consumer price growth in Ukraine has accelerated to 3.9%.