Ukraine's First Lady avers Russia must be blamed for the surge in energy & product prices

The First Lady of Ukraine Olena Zelenska highlighted the effects of the brutal war on the world that Russia started, particularly the increase in the cost of goods and energy in many nations. Zelenska made these comments during an interview to the CNA TV channel of a Singapore national broadcaster. She further highlighted the fact that nobody in the world can take a neutral stance in this war but added that "it is not Ukraine that is to blame for the rise in energy and product prices, but Russia."

In the interview, Zelenska said, “People in other countries should know: if their prices are rising, it is not Ukraine's fault, it is the fault of the invader who started the war.” 

Stressing that it is must for the world to acknowledge who started the war, she said: “You can be either on the side of the invader or on the side of the one who was attacked. There is no option number three.” Adding to it, Zelenska noted, “To make up your mind, you just have to honestly ask yourself: would I like to be in the place of Ukraine and Ukrainians and experience such an attack?”.

Ukraine's inflation rate would exceed 30% due to the war

Meanwhile, the National Bank of Ukraine's quarterly inflation report for July 2022 revealed that the country's inflation rate would exceed 30% and its gross domestic product (GDP) will decline by around a third in 2022 due to the ongoing war. The bank underlined the damages to the Ukrainian economy and significant inflationary pressure had been brought on by the ongoing Russian military assault. It went on to say that since April, as Ukraine has continued to free the territories and reduce the number of areas affected by active fighting, economic activity has been returning, as per media reports. In the second quarter of 2022, the unemployment rate had risen to almost 35% as a result of the severe economic downturn.  

The bank further predicted that in 2023, economic development will resume in the war-torn country. The National Bank of Ukraine emphasised that inflation would start to drop in the first quarter of 2023 and will pick up speed by the end of 2022. 

According to the bank's assessment, inflation would reach 31% as long as the war and high energy prices continue to negatively impact most of the supply. It added that improved inflation expectations, logistical procedures, investment activities, and a gradual increase in harvests are all projected to cause inflation to slow down in 2023. Consumer inflation will decline, the bank anticipated, reaching 20% in 2023 before falling further to a single-digit level in late 2024, as per media reports. 

(Image: AP)