KIEV, Oct. 5 – Deflation is more damaging to the Ukrainian economy than inflation, according to NBU Council chief Ihor Prasolov.

"Deflation really does do more harm that inflation, as there are no economic incentives for economic operation," he said by phone in Kiev on Thursday.

"In the future, the NBU will continue sticking to a policy of having neither inflation nor deflation," he said.

Deflation in Ukraine was registered at 0.3% in August. Since the start of the year deflation has reached 0.4%. Year-over-year, the level of consumer prices in August did not change.