Rising CPI trends to persist until start of next year: expert explains contributing factors

The consumer price index will keep growing not only until the end of the current year, but also at the beginning of the next one.

Oleksii Herashchenko, economist, lecturer in finance at Kyiv-Mohyla Business School, made this statement during a discussion at Media Center Ukraine.

“All factors are now pointing at raising inflation. These include the situation with the electrical grid, increase in excise taxes on fuel, as well as the significant devaluation of the hryvnia. These are also the factors that will play an additional role. We have quite serious problems with the budget execution, and accordingly the package of measures that will now be put forward in the coming days or weeks in the form of tax increases, in the form of an increase in government borrowing – all this will inevitably play a role and influence consumer prices in the fall. Therefore, it is clear that the current inflation forecast is inaccurate. We will probably see updated forecasts today, and accordingly, these increasing CPI trends will persist not only until the end of the year, but at least at the beginning of the next year as well,” Oleksii Herashchenko explained.

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