News State macroeconomics 11 May 2023
Compared to March 2022, inflation slowed to 17.9%
The inflation rate in Ukraine in April 2023 slowed down to 0.2% compared to 1.5% in March this year and 0.7% in February. This is evidenced by State Statistics Service’s data.
In April 2022, inflation was recorded at 3.1%, so on an annualized basis, in April 2023, it decreased to 17.9% from 21.3% in March this year and 24.9% in February.
Core inflation also eased to 0.5% last month from 1.5% in March, returning to February levels.
Taking into account the fact that in April 2022 core inflation was 3%, on an annual basis core inflation in April 2023 also decreased to 17.2% from 20.1% in March.
In 2022 inflation in Ukraine reached 26.6% compared to 9.4% in 2021. In December 2022, the inflation rate remained at the November level of 0.7% compared to 2.5% in October.
As GMK Center reported earlier, on November 3, 2022, the Verkhovna Rada in the second reading and as a whole adopted a bill «On the State budget of Ukraine for 2023». This year, the government expects GDP growth of 3.2% and an inflation rate of 28%.
At the same time, the National Bank has downgraded the country’s gross domestic product (GDP) growth forecast in 2023 from 4% to 0.3% in the previous forecast.
The worsening of expectations is primarily related to the consequences of energy terror on the part of the Russian Federation, as well as a revision of the assumption regarding the duration of security risks’ preservation. As a result of the latter, the full unblocking of ports is expected to be delayed, which will hold back the potential for export recovery.