Ukraine ups 2008 inflation forecast-agencies

11:12, 12 June 2008
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 To 15.3 percent

Ukraine`s government has raised its 2008 inflation forecast to 15.3 percent from the previous figure of 9.6 percent, UNIAN news agency quoted Finance Minister Viktor Pynzenyk as saying.

Pynzenyk was speaking to reporters after a cabinet meeting at which Prime Minister Yulia Tymoshenko said month-on-month inflation in June would decline to "close to zero" compared to 1.3 percent in May.

Interfax Ukraine ne ws agency quoted Deputy Prime Minister Ivan Vasyunyk as giving the same revised 2008 figure of 15.3 percent.

But Tymoshenko later declined to disclose any new forecast, saying this was still subject to discussion.

"Given that this document has been approved in principle, it must be agreed with the president, with parliamentary committees and the central bank," she told a news conference.

"I think this can be done by next Tuesday," she added, referring to final approval of an inflation forecast.

Tymoshenko has been battling record inflation rates in Ukraine, with the month-on-month figure hitting 3.1 percent in April and year-on-year levels exceeding 30 percent.

Cumulative consumer price rises hit 14.6 percent in the first five months of the year. The original government forecast was first exceeded in March.

Economy Ministry Bohdan Danylyshyn this week forecast a further decline in inflation levels, saying government measures to control price rises were taking effect.

Reuters

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