Inflation in Ukraine: causes, trends and ways to overcome

Abstract

Inflationary processes in our time have a negative impact on all aspects of society. In particular, inflation hinders economic growth, destroys the monetary system, contributes to the devaluation of human labor and promotes the release of money abroad.
The purpose of the article is to study inflation in Ukraine, identify patterns of its development and identify ways to overcome it in modern conditions.
The main patterns of development of inflation processes in Ukraine are highlighted and the analysis of the main inflation indicators during 2014-2020 is carried out. As a result, there has been a trend of slowing inflation since 2017 in Ukraine due to the strengthening of the hryvnia exchange rate and the general decline in world energy prices. The main factors influencing the consumer price index in Ukraine during the study period are also identified and the values are compared with each other for the study period. The impact of the COVID-19 pandemic on expected inflation is taken into account.
In addition, the factors that accelerate and curb inflation in Ukraine are highlighted. Factors accelerating inflation included: credit expansion; oversaturation of money circulation channels; high demand for goods and services; increasing the level of production costs; seasonality. Factors holding back inflation included: strengthening the national currency; rising prices for basic products; raising social minimums; rapid growth of money supply associated with bank lending, etc.
Based on the considered points of view on the problem of overcoming inflation in the country, the ways of overcoming inflationary processes are proposed, which are aimed at compensating for the devaluation of the population's money and stabilizing the country's money turnover.