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Weekly Insight -- Inflation unexpectedly jumps to 9.5% YoY

In May, inflation acceleration significantly exceeded expectations, primarily due to a sharp rise in prices for certain foodstuffs and natural gas. Fundamental inflationary pressure remains relatively moderate, although core inflation is also affected by the rapid rise in sunflower oil prices. Given the predominantly temporary nature of accelerating inflation and the strengthening of the exchange rate in recent weeks, we still consider that the NBU will keep the rate on hold at 7.5% this week.