KYIV, April 15 – Inflation in Ukraine by the end of 2022 may exceed 20% due to the consequences of a full-scale war, but it will be controlled, the National Bank of Ukraine said in a report posted on its website.

The increase in the price of goods and services will be due to disruption of production processes, logistical problems due to the temporary occupation of part of the territories, the destruction of transport infrastructure and, as a result, an unevenly distributed supply across individual regions, the report said.

The inflation will also be spurred by the pass-through effects of the devaluation of the hryvnia exchange rate that occurred on the eve of the war and the high cost of energy in the world, which will put pressure on the cost of fuel, goods and services with a significant share of energy in the cost.

Meanwhile, consumer price increases will be restrained by measures taken by the National Bank and the government of Ukraine, including temporary fixing the hryvnia exchange rate, which curbs the likely worsening of expectations and an increase in the price of imported goods. (om/ez)