Inflation will hit 44pc in Ukraine this year, as the embattled economy has seen prices soar amid economic collapse.

 

Consumer prices have hit eye-watering levels in 2015, according to the country’s central bank governor. Inflation averaged 24.9pc in 2014.

 

Valeria Gontareva, of the National Bank of Ukraine, said authorities were aiming to get inflation to around 5pc by 2019.

 

The economy has also lumbered under capital controls which limit the purchasing of foreign exchange in a bid to protect the collapsing value of the hryvnia.

 

Ukraine has been locked in a stalemate with Moscow over the repayment of a $3bn bond. Kiev defaulted on the debt earlier this month after Russian authorities refused to take part in a private sector debt haircut.

 

The issue has also stoked tensions with the IMF in Washington, which changed its lending rules to continue providing aid to governments who fall into arrears.

 

Telegraph