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July 09, 2014 10:25

Economy Ministry not expecting further hryvnia devaluation and growth of inflation

Kyiv, July 9 (Interfax-Ukraine) - Ukraine's Ministry of Economic Development and Trade is not expecting the further devaluation of the hryvnia and the increase in the rate of inflation growth in the current year, minister Pavlo Sheremeta has said at a briefing in Kyiv.

"There was the effect of devaluation, which strongly influenced the rate of inflation. As we are not expecting the further devaluation and rely on the effectiveness of measures to reduce the budget deficit, I as an economist expect the deterrent effect on the economy, which should lead to the decrease [in the rate of growth] of inflation," he said.

As reported, inflation in Ukraine in June 2014 slowed to 1% compared to 3.8% in May, 3.3% in April and 2.2% in March.

The State Statistics Service said that since the beginning of this year consumer prices in the country have raised by 11.6%. In annual terms (relative to the same month last year) inflation accelerated to 12% from 10.9% in May, 6.9% - in April and 3.4% - in March.

In 2013, consumer prices in Ukraine rose by 0.5%, while a year before they fell 0.2%. The national budget for 2014 is based on the forecast of inflation of 14%.

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