Inflation in Ukraine will be Much Higher than Previously Predicted

Inflation in Ukraine will not be able to contain, everything will rise in price soon…

Inflation in Ukraine will be much higher than previously predicted. It will not be possible to keep it within the planned five percent. Because of this, a rapid rise in prices for many goods will soon begin. This alarming forecast is contained in the NBU Inflation Report.

The National Bank names several reasons that led to the rapid rise in inflation

Due to floods in western Ukraine and severe drought in the southeast, the 2020 harvest turned out to be much worse than was predicted. Moreover, it turned out worse in almost the entire spectrum of agricultural crops. Not surprisingly, food prices have skyrocketed. Therefore, in 2021, the products that form the basis of the consumer basket of most Ukrainians – sugar, eggs, milk, bread, butter, flour – will rise in price.

The situation may be evened out if the harvest is better that year. Although alarming forecasts are already coming from farmers. Due to the expected severe frosts, winter crops may be damaged.

 

 

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