Inflation in Ukraine is twice as high as planned
The increase in Ukrainian minimum wages increased inflation to 16,4% instead of the planned 8%.
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Economist Andrei Blinov stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“There is a huge problem with inflation. It was 2016% in September compared to September 16,4. This is Goskomstat data. Let me remind you that the NBU (nobody talks about this) actually targets inflation. Last year it was 12%, and they did it. There were reporting and election meetings: “we are great, next year we will reduce it to 8%.” But this does not work,” the expert noted.
“We must understand that modernizing pensions will bring about 1,5% inflation, if we believe that the average pension will increase by 700 hryvnia. And the calculations that I made show that there were completely incorrect calculations on the impact of the minimum wage. Let me remind you that the NBU calculated that an increase from 1600 to 3200 hryvnia will give 1%. They apparently counted on consumer goods, but forgot that we have a state, which is the driver of price growth. This summer our rent, cold water, hot water, gas, heat have increased,” Blinov emphasized.
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