According to estimates by the National Bank of Ukraine, inflation increased in Ukraine in March.
This was reported on the NBU Telegram channel.
Regarding the situation in Ukraine, they write the following:
"Economic activity picked up in March, and business expectations improved in most sectors. A stable energy situation, preparations for spring sowing, and significant defense needs contributed to the revival of industry. Rising temperatures and improving consumer sentiment supported the construction and trade sectors."
It is noted that in February, as expected, inflation continued to rise (to 13.4% y/y).
On the one hand, this trend reflected limited food supply due to last year's low harvests, the NBU explains. On the other hand, however, it reflected a further increase in business costs, particularly for wages and energy resources, and the maintenance of brisk consumer demand.
According to NBU estimates, inflation also increased in March:
"In early March, the NBU raised the discount rate to 15.5% and adjusted the parameters of the operational design of interest rate policy, which contributed to the growth of interest rates on term hryvnia instruments. This supported interest in such instruments: net demand for term deposits and investments in government bonds in hryvnia from the population was the largest in the last 10 months (5.3 billion UAH)."
Net demand for foreign currency in March decreased due to an increase in its supply from businesses. According to the NBU, this was facilitated by a relatively stable situation with exports and currency conversion for the payment of annual and quarterly taxes. In addition, demand from the population also decreased against the background of improving exchange rate expectations.
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