NBU expects inflation in 2017 higher than projected 12.2%

The National Bank of Ukraine (NBU) expects the consumer price index in 2017 to grow more than the forecasted earlier 12.2%, according to the central bank's website.

"The growth of the consumer price index and its components in November exceeds the forecast in the Inflation Report for October 2017 and shows that by the end of 2017 the index growth will deviate more significantly from the target than previously expected," the report said.

According to the National Bank, the actual level of inflation in November remains higher than forecasted because of a higher than expected growth in food prices.

As reported, the National Bank in late October worsened the inflation forecast for 2017 to 12.2% from 9.1%. Despite the revision of forecasts, the inflation target of the central bank remains unchanged by the end of the year at 8% +/- 2 percentage points. The National Bank only indicates that the actual level of inflation can more or less recede from the inflation target.

Together with the forecast for 2017, the NBU worsened the forecast for inflation for 2018 to 7.3% from 6%.