Ukraine Becomes World Leader in Price Growth

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Translated by Ollie Richardson for Fort Russ

30th January, 2016


Ukraine, up to 2015, has become the world leader in inflation — rising prices in the country amounted to 43.3%. In second place is Kazakhstan (13.6%), the third — Russia (12.9%). This was reported by Rosstat.

High inflation was also observed in Belarus (12%), Brazil (10.7%) and Turkey (8.8%). In the U.S., the cost of goods and services rose by 0.7% and in Germany, 0.2%.

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In several European States, there was deflation. The heaviest rate decreases were in Switzerland (1.4%), Bulgaria (-0.9) and Romania (-0.7).

The report of the Russian statistical office shows a comparison between the major world economies, however, some countries were not included in the list, such as Venezuela. According to the Central Bank of the Bolivarian Republic, inflation from September 2014 to September 2015 reached 141.5%. The IMF believes that in 2016 it will accelerate to 720%.

According to the forecast of the Bank of Russia, inflation in the country in 2016 will reach 5.5-6.5%. The Ministry of Economic Development expects price growth to move to 6.4%, the Finance Ministry had allowed it to slow to below 6%.

In 2016, the IMF predicts the inflation in Ukraine will decrease to 12%. The government expects the rising cost of goods and services to move to 12-14.7%.

On 14th January, the Ministry of Economic Development and Trade of Ukraine said that, in the beginning of 2016, will see more rapid growth of prices due to “intense trade and economic relations with Russia.” Among other factors that spurred inflation was the failure of the IMF to allocate the next tranche at the end of 2015, as well as tensions on the foreign exchange market.

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