Too low: the Finance Ministry explained how should increase inflation in Ukraine

The Minister Petrashko called the level of “healthy” growth of prices

The optimal level of inflation in Ukraine in the short term should not be below 8-9% despite the fact that in may, inflation in annual terms has slowed to 1.7%. This was stated by Minister of economic development, trade and agriculture Igor Petrashko.

“I believe that inflation should be slightly higher for our economy. <…> The inflation in our situation should be higher, maybe 8%, maybe 9%. This is healthy inflation, which will allow companies to grow,” the Minister said in an interview to “Interfax-Ukraine”.

Inflation laid low with the prices until the end of summer

According to Petrashko, Ukraine will also need to slightly devalue the hryvnia.

Earlier, the Minister had stated that the Ukrainian economy was in a “catastrophic” situation because of inflation, which was much below forecasts. However, he explained that Ukraine is not alone in dealing with this problem, because too low inflation means stagnation in the economy.