Fitch forecasts inflation averages 11.7% in 2022, with an additional 250bp of policy interest rate rises by year-end, Report informs, citing Agency.
"Inflation rose further to average 12.2% in 1Q22, from 11.0% in 4Q21 (and 3.6% in 2018-2021). Food prices, which rose 16.8% yoy in March, will be further impacted by lower imports from Ukraine and Russia, particularly of wheat. Easing global commodity prices, fading supply chain disruptions, and the lagged effect of real effective exchange rate appreciation will help bring inflation down to a projected average 7.2% in 2023, but still above the 'BB' median of 3.8%," Fitch stated.