NBU does not rule out the increase of inflation rate

The National Bank of Ukraine (NBU) does not exclude the increase of inflation rate in short term prospects.

This is stated in the press release following the meeting on monetary policy issues with the participation of the National Bank Chairman Serhiy Arbuzov, his deputies and heads of the NBU divisions.

"The meeting participants did not exclude some increase of inflation rate in the following months, which may be due to seasonal factors and possible acceleration of price growth in world food markets.

Inflation rate in annual terms will also be affected by the last year’s low comparative base. However, a possible increase of inflation rate due to the influence of the above factors will be quite moderate"- quote from the press release.

The National Bank believes that the existing rate of headline inflation in Ukraine is close to the optimal one.

It should be noted, that consumer prices in Ukraine in July 2012 dropped by 0.2% compared to June 2012, and by 0.1% – compared to July 2011.

Inflation in January-July 2012 compared to the same period in 2011 was 1%, and since the beginning of 2012 (July 2012 compared to December 2011) there has been a deflation of 0.1%.

Core inflation (core CPI) in July 2012 compared to June was 0%, since the beginning of the year (July 2012 compared to December 2011) – 0.4%.

In July 2012, the rate of core inflation compared to July 2011 was 3.1%, in January-July 2012 compared to the same period in 2011 – 4.8%.

UNIAN