8 Jul 2010 17:20

Ukraine ministry forecasts inflation to slow to below 10% in 2011

KYIV. July 8 (Interfax) - The Ukrainian Economy Ministry forecasts a slowdown in consumer inflation in 2011 to below 10% from the expected 13.1% in 2010, the National Bank of Ukraine (NBU) said.

According to NBU letter No. 14-011/2940-11651, the estimations are included in the May edition of the draft forecast of Ukraine's economic and social development in 2011.

"The underlying inflation index both in 2010 and 2011 is expected at a level below 110%," reads the letter.

Inflation slowed to 12.3% in 2009, from 22.3% in 2008. The government is so far standing by its 13.1% forecast for 2010, but says it could improve this to below 10%. Overall inflation was 3.3% and underlying inflation was 3.1% in Q1 2010.

The World Bank forecasts Ukraine will see 11.95 inflation in 2010 and 9.5% in 2011.