Inflation blows up economy indicators - expert
Ukraine’s economy is growing much faster than the forecasts, which allows for improving not only macroeconomic guidelines but also increasing social expenditures in the budget, according to KyivWeekly. However, the increase in nominal GDP growth was achieved mainly thanks to inflation and manipulation of figures, Director for Economic Programs at Razumkov Center Vasyl Yurchyshyn told KW.
Instead of the traditional reduction in the inflation dynamics in April-May, prices grew by around 2%. Based on the results in May, the annual inflation indicator already reached 11%, the think-tank’s economy expert said.
“According to our forecasts, while the real growth of the consumer price index this year will be around 12-13%, the government will most likely try to manipulate the figures and the official inflation indicator will turn out to be much lower,” Vasyl Yurchyshyn warned.