In particular, due to the hryvnia appreciation and an improvement in expectations of households, businesses, banks, and financial analysts. At the same time, inflation remained relatively high. Robust consumer demand, higher production costs, and further growth in administered prices put pressure on prices. What will be the future trajectory of inflation?
The NBU reiterates its forecast that inflation will decline to 6.3% as of the end of 2019, return to the target range in early 2020, and reach the medium-term target of 5% at the end of 2020. The tight monetary conditions will continue to be the disinflation driver.