Inflation may accelerate after the end of the war – expert

Inflation in Ukraine is likely to rise after the war is over, as a rapid economic recovery after a crisis is usually accompanied by inflationary processes.

This was stated by Lyudmyla Cherenko, Doctor of Economics, head of the research department of the standard of living of the Institute of Demography and Social Studies on the air of the Kyiv TV channel, reports UNN.

She explains that economic growth after a serious crisis is accompanied by inflation.

Rapid economic growth after a serious crisis is always accompanied by inflation. It is another matter to what extent this growth will be controlled and within what limits inflation will remain. If inflation is within controlled limits, then, when it comes to rapid economic growth after a sharp decline, an inflation rate of up to 20% can be considered controlled. These are the limits that are more or less normal

As for the assistance from partner countries, today they cover many of the social expenditures in our budget.

Since not only the economy has suffered from the war, but we have to allocate large amounts of money for military needs, this creates a double burden on the economy. It is clear that it would be critically difficult without the help of our partner countries. But I don’t agree that everything will stop overnight. From what I have heard and read, many investors want to come to Ukraine. Many are ready to do so as soon as it is clear what will happen on the military front

To recap

The National Bank of Ukraine has raised its key policy rate to 13.5%.