KIEV, Jan. 9 - The conditions for high inflation will remain in 2008, being fueled by an increase in imported gas prices and a planned rise in budget spending, the nominal growth of which is expected at 34%, Kiev-based Troika Dialog Ukraine company said in an overview on Ukraine's economy.

"One should not rule out a further increase in the speed of inflation in the first quarter of 2008 before price hikes slow down. However, the inflation rate is most likely to go beyond the official forecast [of 9.6% by the end of the year]," said Iryna Piontkovska, an economist at Troika Dialog Ukraine.