KIEV: Annual inflation in Ukraine is expected to slow in July as the central bank tightens monetary policy, but inflation for the year is still on track to exceed the 2018 target, a Reuters monthly poll of analysts showed on Monday.
Ukraine's consumer inflation is expected to reach 9.6 percent year-on-year in July, down from June's 9.9 percent, the poll showed.
Ukraine's State Statistics Service is set to publish official data on July's inflation on Thursday.
In all of 2018, inflation is seen at 10.2 percent, the poll showed, fuelling concerns about whether the authorities can contain prices growth with the hryvnia currency weaker and utility tariffs higher.
The National Bank of Ukraine raised its key interest rate to 17.5 percent in June as it struggled to keep consumer inflation below the 9 percent mark this year, after it reached 13.7 percent in 2017.
The central bank, which holds its next monetary meeting on Sept. 6, has indicated it was ready to raise rates further if it deems it necessary to contain inflationary risks.
The central bank needs to rein in inflation as part of structural reforms agreed with the International Monetary Fund. A delay in implementing the reforms puts receiving IMF loans at risk, threatening Ukraine's macroeconomic stability.
The country urgently needs an inflow of foreign currency to service its public debt, repayment of which is due to peak in 2018-2020.
Kiev has not received any financial aid out of the $17.5 billion IMF package since April 2017 because of the lack of structural reforms required by the IMF.
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