On December 12, the board of the National Bank of Ukraine decided to increase the discount rate to 13.5% per annum. About this reported press service of the NBU. The decision is aimed at ensuring the stability of the foreign exchange market, controlling inflationary expectations and gradually reducing the level of inflation to the target of 5%.
As noted by the NBU, in recent months the rate of inflation has exceeded the forecasted indicators. In November, its level reached 11.2%. The main factor behind this was the increase in food prices due to this year’s weaker crops, which, according to experts, is temporary.
“The increase in prices was largely determined by the consequences of this year’s worse harvests, which, however, is a temporary factor, the influence of which will eventually wear off. At the same time, the fundamental inflationary pressure also increased. Thus, the basic inflation grew due to the increase in production costs, in particular for electricity and labor wages, as well as due to exchange rate effects due to the weakening of the hryvnia in previous periods”, – emphasized in the regulator.
Although inflation expectations remain relatively stable, there is a risk of their imbalance due to the increased attention of the population to inflationary processes. Inflation is likely to continue to rise in the coming months. However, in 2025, it is predicted to slow down and approach the goal of 5%, thanks to the monetary measures of the NBU and the stability of the foreign exchange market.
