The expert lists two key inflation drivers / Photo from UNIAN
He says the National Bank "did what it had to do."
An expert says food price hikes and the deficit of the national budget are behind inflation in Ukraine now.
This opinion was shared by Director of the Institute for Development of Territories Yuriy Hanushchak on TV Channel Ukraina 24.
Read alsoConsumer inflation in Ukraine slows to 8.4% in April 2021
According to him, the National Bank "did what it had to do," i.e. it raised the key policy rate, so now prices have slowed.
"We must be aware that Ukrainians spend a huge part of their money on food, prices are objectively growing. Therefore, our inflation has been growing faster than in other countries. And another source of inflation that will surely give a blow is an exorbitant budget deficit. Most likely, they will start printing more money," the expert said.
Earlier, the State Statistics Service announced that consumer inflation in Ukraine in April 2021 in annual terms, compared to April 2020, was 8.4%, slowing down from 8.5% in March 2021.