Prime Minister of Ukraine Viktor Yanukovych claims that inaccurate forecast of inflation in Ukraine was made because of the destabilization of inner political situation in the country, made by the opposition. He stated in his article “Inflation as challenge to Ukrainian politicians,” published today in the newspaper “Facts”.

“The rise in prices, taking place for the last months, forces to estimate this problem in all its difficulty. The inflation level has exceeded forecast which were made at the beginning of the year. But at the begging of the year we didn’t take into account the destabilization of inner political situation in the country, which was provoked by the populists and politicians from the opposition. In connection with this, the forecast turned out to be inaccurate. As well as forecasts of many other international organizations together with the International Monetary Fund,” Yanukovych writes.

At the same time he notes that prices for foodstuff have increased practically in the whole world. “In Germany, the economy of which is being developed successfully enough, the prices for bread and milk have increased sharply, and the same situation is in France. According to the forecasts of analytics, the further inflation growth and decrease of purchasing capacity can lead to the lower economic growth in all countries of the EU,” the head of the Ukrainian government explained.

In Ukraine the inflation in October against September of this year comprised 2,9%, in January – October 2006 – 11, 7 %.

The inflation in October 2007 against October 2006 comprised 14,8%, in January – October 2007 against January – October 2006 - 12, 2 %.

During the budget formation for 2007 the Cabinet of Ministers proceeded from the following forecast: inflation rate – 7,5%, GDP growth – 6,5%, growth of industrial production – 8%.


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