NBU warns inflation at year-end may exceed projections

During a traditional meeting with the heads of the largest banks, Solohub said that the pressure of temporary factors provoked in Ukraine a rise in prices for meat and dairy products, vegetables and tobacco products.

"Monetary policy must respond to changing fundamental factors. Therefore, we will carefully monitor that these temporary factors not turn into fundamental ones. In addition, inflationary risks can be realized in the context of fiscal policy. If, as a result, we see high risks of non-return of inflation to targets, we will respond with a tight monetary policy," Solohub said.

Read alsoNBU: Taruta spreads false information about U.S. Congress hearings on UkraineAs UNIAN reported earlier, the National Bank in September 2017 decided to keep the key rate at 12.5%, as well as in the two previous months - July and August.

According to the regulator’s estimates, inflation this year will deviate more significantly from the central point of the target range at 8% plus or minus 2 pp at the end of 2017.

Read alsoEconomy ministry: Shadow economy in Ukraine drops to 37% of GDP in Q1According to the State Statistics Service, deflation in Ukraine this August, compared to July, was recorded at 0.1%, while inflation in annual terms accelerated to 16.2%.

The NBU’s maximum historical key rate at 30% was effective from March 4 to August 28, 2015.