The National Bank of Ukraine predicts a gradual increase in tariffs for housing and communal services to economically justified levels over the course of several years. At the same time, it is expected that electricity tariffs for the population will grow faster due to the difficult situation in the energy sector. This is stated in the NBU Inflation Report for April.
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In its updated macroeconomic forecast, the National Bank included “a fairly rapid and significant increase in prices for electricity.”
“ This will create additional pressure on prices and the need to increase subsidies for the population,” the document notes.
The NBU notes that the postponement of decisions on increasing tariffs for housing and communal services will lead to lower inflation, but will accumulate quasi-fiscal imbalances and worsen the financial condition of state-owned energy companies.
“This will aggravate the risks of instability in the domestic energy market, worsen the investment potential of the industry, while price pressure will only be postponed for the future,” the National Bank believes.