empty
08.02.2022 06:32 PM
Inflation is still raging in Ukraine

Inflation in Ukraine slowed only slightly in January - to 9.9%, as concerns about a military attack by Russia led not only to a depreciation of the hryvnia but also pressure on prices. The situation was not saved even by another increase in the interest rate.

Inflation is still raging in Ukraine

The annexation of Crimea in 2014 and the conflict in the east of the country turned out to be far from the last chapters in the complex history of relations between Russia and Ukraine. So, in recent weeks, Russia, according to Western analysts, has concentrated more than 100,000 troops at the Ukrainian border. Moscow denies that it is planning a further invasion.

However, investors do not risk capital investments, preferring other currencies to the hryvnia.

The median estimate of inflation in January from Ukrainian analysts from banks and brokerage companies was 9.9%, according to the survey, compared with 10% in December.

"We expect it to decrease slightly in January," said Sergey Kolodiy from Raiffeisen Bank's Ukrainian subsidiary.

"A particular risk for inflation is the devaluation of the hryvnia in the second half of January, mainly caused by geopolitical tensions," Kolodiy said.

Indeed, the hryvnia has already lost about 5% against the US dollar in January, falling to 29/$1 for the first time since February 2015. This almost nullified the efforts of the central bank to curb price growth.

Thus, as part of the fight against inflation, the National Bank of Ukraine in January raised the key interest rate by another percentage point - up to 10%. And this is another increase after the previous five in 2021 to combat inflation, which in September reached a three-year high of 11%.

Nevertheless, analysts do not expect a further weakening of the hryvnia, which strengthened somewhat in early February and returned to the level of 28/$ 1. The median forecast in the survey shows the hryvnia at the level of 27.8/$1 at the end of February.

"Russia's less aggressive rhetoric and significant NBU interventions have played in favor of the local currency," analysts say.

Of course, while tensions remain at the borders, the hryvnia is under severe pressure. However, as soon as the conflict is resolved, Ukraine's economy may enter the Renaissance.

Egor Danilov,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

US Market News Digest for April 03

Futures plunge after new tariffs: Nike and Boeing hit hardest. Fear index rises US stock markets opened April sharply in the red. Donald Trump announced an increase in tariffs

Irina Maksimova 13:24 2025-04-03 UTC+2

Markets on edge as Trump imposes 10% tariff on imports, gold and euro soar

Trump announces 10% basic tariff on all imports in keynote speech Gold at record high, yen jumps, bonds rise Indices rise ahead of speech: Dow 0.56%, S&P 500 0.67%, Nasdaq

Thomas Frank 10:55 2025-04-03 UTC+2

$10 billion: cost of mistake. J&J again under spotlight

Balance sheet indicators are in turmoil. Airline stocks are falling. J&J is also sliding. Big gains for recent IPO names CoreWeave and Newsmax. Indices: Dow down 0.03%, S&P

14:26 2025-04-02 UTC+2

US Market News Digest for April 02

Johnson & Johnson faced a serious setback when a judge rejected a $10 billion settlement over talc claims, causing the company's stock to plummet by 7.6%. Market participants have

Natalia Andreeva 12:44 2025-04-02 UTC+2

$10 Billion: The Price of Mistakes? J&J Back in Legal Storm

Balance Sheets Survive Day Ahead of Trump Tariff Event Airlines Slip After Jefferies Downgrades Forward J&J Slips After Judge Rejects $10 Billion Baby Powder Settlement Big Gains for Recent

Thomas Frank 08:02 2025-04-02 UTC+2

Q1 2025: Markets witness biggest rate drop since 2022

S&P, Nasdaq post worst month since December 2022 Biggest quarterly interest rate drop: S&P since Q3 2022, Nasdaq Q2 2022 Trump tariff uncertainty weighs on markets in Q1 Trump

Thomas Frank 12:03 2025-04-01 UTC+2

US Market News Digest for April 1

US stock indices closed the trading session with mixed results: the S&P 500 rose by 0.55%, while the Nasdaq 100 lost 0.14%. The reason for this uncertainty is the potential

Ekaterina Kiseleva 11:37 2025-04-01 UTC+2

Gold shines in crisis: best quarter since 1986 amid global turmoil

The Nikkei drops 4% and Nasdaq futures fall 1.4%. Trump signals US tariffs will target all countries. Gold posts its best quarter since 1986, while the dollar heads

12:51 2025-03-31 UTC+2

US Market News Digest for March 31

The US market kicked off the week with a broad-based sell-off, driven by rising talk of retaliatory trade tariffs and deteriorating consumer confidence. Investors are bailing out of stocks

Irina Maksimova 12:16 2025-03-31 UTC+2

Gold: The New Crisis King? Best Quarter Since 1986 Amid Global Turmoil

Nikkei Falls 4%, Nasdaq Futures Fall 1.4% Trump Says U.S. Tariffs Will Apply to Every Country Gold Has Best Quarter Since 1986 Dollar Heading for Worst First Quarter Since Global

Thomas Frank 09:35 2025-03-31 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.