Page 25 - UKRRptSept22

4.0 Real Economy 4.1 Industrial production
No new industrial production figures have been released but two thirds of Ukraine’s companies are reportedly working.
4.2 Inflation
Annual inflation in Ukraine reaches 22.2% in July. According to the State Statistics Service of Ukraine, consumer prices in Ukraine accelerated to 22.2% in July compared to last year. Earlier in July, the National Bank of Ukraine said that inflation in Ukraine will reach over 30% in 2022, while the country's GDP is expected to decrease by a third this year amid a Russian invasion that is causing significant losses to Ukraine's economy.
The Ukrainian government believes that 22% inflation is not critical. The Minister of Finance of Ukraine stated that he considers inflation in Ukraine relatively high when compared with the pre-war economic conditions. However, against the background of rising inflation in Europe and the US, where it approaches 10%, and considering the state of war, the present 22% inflation rate could be much higher. The government believes that there are unfavourable external conditions, supply chain breaks, and the resulting high fuel prices would stimulate inflation even under normal conditions, but martial law is the main problem. Due to all the war difficulties, the government is in relatively good shape and continues to successfully operate the banking and
25 UKRAINE Country Report September 2022 www.intellinews.com