KIEV: Ukraine is unlikely to achieve its goal of slowing inflation by the end of the year to below the 12.4 percent it ended at last year, a Reuters monthly poll showed on Friday. Analysts from 13 Ukrainian banks and brokerages regularly polled by Reuters increased their inflation forecast for the whole of 2017 to 13.0 percent versus 11.2 percent in last month’s survey.
In 2016 inflation slowed to 12.4 percent from 43.3 percent a year earlier. The central bank initially targeted a rate of around 8 percent in 2017, but last week revised its forecast up to 12.2 percent, for the second time this year. It also raised its main interest rate to 13.5 percent from 12.5 percent, its first rate increase since early 2015, as it warned of escalating inflation risks. The regulator said the government’s decision to increase utilities tariffs and social payments is contributing to inflation pressure. Inflation was over 16 percent year-on-year in August and September. Analysts expect that inflation will slow to 8.7 percent in 2018, still higher than the central bank’s forecast of 7.3 percent.
