The other day, the bank-regulator (NBU) increased the percentage of the key rate (from 13.5 to 14.5), and such measures are aimed at slowing down the inflation rate.
11 0
Photo – delo.ua
As reported by “NBN” with a link to the material “RBC-Ukraine”, according to Taras Kozak, president of the investment group “UNIVER”, the use of such an instrument by the NBU previously demonstrated some effectiveness during last year's surge in inflation.
Based on Kozak's words, over the course of the past year, consumer prices (for goods/services) rose by 12 percent, so raising the key rate is somewhat justified.
However, the investor believes that the key reasons for the colossal inflation in Ukraine are not only the monetary factors regulated by the NBN, but also the sharp rise in prices for food/vegetables (against the backdrop of a poor harvest in 2024), rising wages (caused by competition for labor), and also problems with the stability of energy supplies, which complicate production processes.
In addition, Deputy Director of the National Institute for Strategic Studies Yaroslav Zhalilo added that the NBU’s increase in the key rate will not have a very noticeable positive impact on inflation, since prices will continue to rise due to the permanent increase in costs for the elimination of the consequences of Russian attacks.
We are talking about the restoration of facilities business sector and civil infrastructure and ensuring electricity supplies (many enterprises have to use generators/alternative energy sources), which provokes the allocation of more funds for production and maintenance of capacities, and, one way or another, causes an increase in the cost of production, thereby accelerating inflation.
Earlier, we wrote about the fact that the NBU answered in which months of 2025 a slowdown in the rate of inflation is expected.