Only fall in hryvnia exchange rate can impact inflation, says Tymoshenko
Yulia Tymoshenko, Ukraine's Prime Minister

Only fall in hryvnia exchange rate can impact inflation, says Tymoshenko

November 20, 2008 at 14:24 | Interfax-Ukraine
Kyiv, November 20 (Interfax-Ukraine) - A decrease in the hryvnia exchange rate will be the only factor limiting inflation growth in Ukraine, Prime Minister Yulia Tymoshenko has said.

"Today, the only factor influencing inflation will be a fall in the hryvnia exchange rate, and, as a result, the rise in the price of imported goods," she said at a council with regional governors in Kyiv on Thursday.

"The National Bank of Ukraine is carrying out a respective policy on the hryvnia exchange rate, the latter is becoming weaker, and this will trigger an impact from all imported products on the level of inflation," Tymoshenko said.

The prime minister said that the price of numerous goods - even ones that have significantly fallen in price on the international markets due to the financial downturn - remains unchanged in Ukraine. Tymoshenko said that these goods include sunflower, meat, oil, and food.

She also said she had ordered the formation of a reserve of diesel fuel and oil products