Food and fuel prices skyrocketed.
Deputy Chairman NBU Sergey Nikolaychuk noted that scarce goods are getting more expensive. At the same time, he sees no reason to panic, because the situation is under control, reports the Chronicle.info with reference to Channel 24.
What is getting more expensive
Now scarce goods, or those that are enough difficult to deliver. For example, water, vegetables, fruits, meat. Nikolaychuk emphasizes that, in general, the situation does not look uncontrollable or indicative of hyperinflationary processes.
The stabilization factor is the fixing of the official exchange rate. In addition, many entrepreneurs consider it immoral to raise prices for their goods and services in wartime,
— Nikolaychuk believes.
Remember! Earlier, the NBU noted that in February most notably, food and fuel prices have skyrocketed given excessive demand and supply chain disruption.
According to the results of February 2022, prices increased the most for:
- processed food products – 13.8% per annum, dairy products, meat products, imported goods (coffee, chocolate), but the prices for bread and pasta remained unchanged on an annualized basis;
- fuel – 27.5 % per annum, which is explained by the rapid growth in the cost of oil in the world and the weakening of the hryvnia.
What is the situation with inflation
In February, annual consumer inflation accelerated to 10.7% (from 10% in January). On a monthly basis, prices rose by 1.6%. Inflationary pressure increased against the backdrop of a military threat escalating and eventually Russia’s invasion of Ukraine at the end of February, the NBU explains.
As for how we will achieve the 5% goal, first of all, we administrative restrictions and a return to a floating exchange rate regime and inflation targeting,
— Nikolaychuk said.
The deputy head of the NBU also added that he believes that the above process will be absolutely controllable, since the regulator already has a successful the experience of a gradual transition from restrictions to the free movement of capital.
What is inflation
Inflation is a long-term increase in the general price level, reflecting a decrease in the purchasing power of the monetary unit. For countries with developed economies, inflation should be kept within 2±1% per annum, and for developing countries — 5±1% per annum.