The National Bank of Ukraine has been forced to revise its economic forecasts due to rising external risks and problems in the energy sector. According to Volodymyr Lepushynskyi, deputy head of the National Bank, inflation is now expected to be higher than previously forecast.
Factors affecting the economy
Volodymyr Lepushynskyi explained which factors could affect Ukrainians’ wallets in the coming months:
- Conflict in the Middle East: Escalating tensions in this region are leading to instability in global energy markets, which is reflected in fuel prices in Ukraine and logistics costs.
- Energy crisis: The unstable situation in Ukraine’s power grid following shelling is increasing business costs for alternative power sources and electricity rates, which affects the final price of products.
- External risks: Global inflation and changes in the foreign exchange market require caution in the National Bank’s forecasts.
Positive Developments
Despite the challenges, there are also positive factors. In particular, an improvement in Ukraine’s energy sector could stabilize prices. The National Bank plans to continue supporting currency market stability to reduce inflation expectations.
