The National Bank of Ukraine explains why prices are rising in Ukraine: When will prices stop going up.

The National Bank of Ukraine predicts that prices will rise and inflation will reach 10% in the coming years

The National Bank of Ukraine (NBU) has announced that it expects further increases in consumer prices in the Ukrainian market. According to the NBU, inflation will rise to over 10% by mid-next year, but later will return to the target of 5% in the coming years.

Following the meeting of the NBU's Monetary Policy Committee, the bank confirmed this information. The bank noted that consumer inflation in September (8.6%) exceeded forecasts.

The price increase is attributed to poor harvests, rising commodity prices, higher production costs, and exchange rate fluctuations. The impact of these factors was stronger than expected.

The NBU has decided to pursue a policy of maintaining interest rates and is actively working to stabilize the foreign exchange market to counteract price pressures. It is expected that the peak in inflation will be short-lived.

According to the baseline scenario of the forecast, consumer inflation will only persist in the first half of next year. A decline in inflation is expected in the spring due to the measures the NBU will take in the area of interest rates and currency policy.

At the same Time, the World Bank predicts that the war will lead to a slowdown in economic growth in Ukraine to 2% in 2025.