National Bank of Ukraine predicts inflation growth of over 30% in 2022

The National Bank of Ukraine (NBU) has worsened its inflation outlook for 2022 from more than 20% in its previous forecast to slightly more than 30% and expects its return to the 5% target in 2025.

“Inflation pressures will persist: inflation will exceed 30% YoY as of the end of 2022. It will slow considerably in the next years, albeit remaining much above the NBU’s target of 5%, primarily due to the consequences of the war,” the statement said.

The NBU expects that taking into account the consequences of the war and the large contribution of the increase in administered prices, inflation will drop to 20.7% in 2023 and 9.4% in 2024.

Source