“Implementing the termination of the grain corridor will have negative consequences for Ukrainian exports with a corresponding decrease in foreign currency inflows to the country and a possible increase in pressure on the hryvnia exchange rate“, according to an NBU release.
The National Bank notes that restrictions on the Ukrainian food supply by some European countries can also complicate the situation. The regulator predicts increased pro-inflationary risks given the security situation and Russian terrorist attacks against critical infrastructure facilities.
The destruction of the Kakhovka Dam, according to the NBU, will have an additional 0.3% contribution to annual inflation due to the complications it has introduced for many enterprises and the partial loss of the vegetable harvest.