1. SEMI
  2. All Volumes and Issues
  3. Volume 8, Number 1, 2024
  4. FEATURES OF INFLATION PROCESSES IN UKRAINE: PROBLEMS AND CAUSES

FEATURES OF INFLATION PROCESSES IN UKRAINE: PROBLEMS AND CAUSES

SEMI.
2024;
Volume 8, Number 1
: 107-121
https://doi.org/10.23939/semi2024.01.107
Authors:
  1. V. Lemishovskyi
  2. N. Dumych
1
Lviv Polytechnic National University
2
Institution of Higher Education "Private Joint-Stock Company "Lviv Institute of Management"

Research objective. The main purpose of this article is to examine the evolution and dynamics of inflationary processes in Ukraine during 1991–2023 on the basis of historical and systemic analysis, methods of dynamic analysis, structural analysis, and comparative analysis. Separate goals are to reveal and theoretically substantiates the main regularities of inflationary processes influence on the economic development and to analyze the features of anti-inflation regulation in the economy of Ukraine.

Research methodology. In the paper, the authors examined inflationary processes with the aim of identifying their consequences for the economy of Ukraine. A review of publications has shown varying studies of the inflationary process. The paper describes the chronology of inflationary processes, the dynamics of the consumer price index, the socio-economic consequences and causes of inflation in Ukraine. Attention is focused on the need for state regulation of inflationary processes. The effectiveness of the anti-inflationary policy was determined. In line with the findings of the study, the prospects for the implementation of an effective monetary anti-inflationary policy aimed at effective regulation of inflationary processes are outlined.

Conclusions. The authors conclude that the study of inflationary processes is important because inflation affects the exchange rate, economic growth and welfare. Economic agents always adjust financial risks, taking into account that inflation has historically been one of the most acute problems of Ukraine, which has uneven constant development. This study is aimed at determining the essence and causes of inflation in Ukraine during the period of restoration of its independence, as well as the possibility of its regulation by monetary methods. Inflation in Ukraine has specific features related to pricing, purchasing power, money circulation, anti-inflationary and anti-cyclical policies.

Practical implications. The results of this study are of interest to the Ministry of Economy of Ukraine, the National Bank of Ukraine, as well as the Committee on Ukraine's Integration into the European Union, whereas the processes of European integration contribute to reducing inflation in the future.

Originality/value. This study highlights the discussion on inflationary process in the transition economy of Ukraine. The authors emphasize that inflation in Ukraine has a permanent character and requires constant regulation to achieve significant progress in its reducing. The authors discoveredthat authorities should focus on the medium-term horizon of inflation control to ensure a reduction in inflation, as well as a level of inflation appropriate for price stability.

inflation targeting; inflation; central bank; monetary policy; consumer price index; price stability; Key Policy Rate; anti-inflationary fiscal policy.

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