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IMF urges Ukraine to control inflation

The International Monetary Fund has urged Ukraine to take immediate measures to control inflation, as sustained high inflation would greatly harm the country’s economy.

At a press conference in Ukraine’s Black Sea resort of Yalta on Tuesday, IMF Managing Director Dominique Strauss-Kahn expressed the organization’s anxiety over Ukraine’s unsustainable high inflation rate. He also called on other European countries to prevent or solve similar problems. “Even if you live with it (high inflation rate) for a very short term, it takes a very long time afterwards to sort out the consequences,” Strauss-Kahn said at another press conference Friday.

Ukraine’s Consumer Price Index (CPI) for the H1 of 2008 rose 15.5% year-on-year. Although the government this week set its year-end inflation target to 15.9% for 2008 against last year’s 16.6%, experts estimate that Ukraine’s inflation rate this year may exceed 20%. (