Headline consumer inflation in April comes out lower than in projected trajectory – National Bank

The National Bank of Ukraine (NBU) says the country's headline consumer inflation at 8.4% in April 2021 came out lower than in the projected trajectory published in the April 2021 Inflation Report.

Read alsoExpert says food price hikes and budget deficit behind inflation in Ukraine now"This was primarily due to the slowdown in raw food price growth," the regulator's press service said on its website on May 11.

However, underlying inflationary pressures, as measured by core inflation, intensified amid sustained demand and higher production costs.

"Core inflation accelerated to 6.3% y-o-y [year-over-year] (from 5.9% y-o-y in March)," the report said.

The NBU expects that significant inflationary pressures will persist in the coming months, given strong consumer demand and high global prices, particularly for energy and food.

Background

Consumer inflation in Ukraine in April 2021 vs. April 2020 stood at 8.4%, having slowed from 8.5% in March 2021 y-o-y.