Over the past months, inflation rate in Ukraine rose to a new high (9.6 percent), remaining one of the highest in the region (Turkey is the only country with even worse inflation figures). This was stated by OPPOSITION PLATFORM — FOR LIFE MP Serhiy Lovochkin commenting on the State Statistics Service data on May inflation rates.
“In five months of 2019, inflation rate reached 4.2 percent, which is two thirds of the National Bank’s annual forecast. It’s obvious this forecast is unrealistic again, and the figure will rise to at least 9 percent by the end of the year. Unrealistic forecasts allow the government to underfinance social expenses and avoid adjusting pension payments in accordance with inflation. Current administration has been doing this for six years now, and we have to stop it. The new government formed after the election must undertake this task,” Lovochkin said.
According to the politician, the inflation expectations for the second half of the year are quite pessimistic. The major inflation drivers will be devaluation, increase in administratively regulated tariffs and production costs for labor and energy.
“Dragging the process of parliamentary coalition creation might be another instability factor, and it will worsen the inflation expectations. This is why the new government should be formed immediately after the election. And the new administration should finally stop stealing from the people through unrealistic inflation forecasts,” Lovochkin summed up.Follow @serhiylovochkin