Ukraine faces highest inflation since 1996

Prices in Ukraine will rise this year at the fastest rate since 1996 due to a sharp slump in the national hryvnia currency and a rise in utilities prices under an IMF bailout programme, a Reuters monthly survey showed.

Analysts of 14 Ukrainian banks and brokerages see inflation accelerating to 36 percent in 2015 from 24.9 percent last year. 

In 1996 consumer prices rose 39.7 percent and gross domestic product contracted 10 percent as Ukraine endured almost a decade of economic crisis after the Soviet Union collapsed and the country became independent. Ukraine's economy shrank 6.8 percent last year amid political upheaval and a burgeoning conflict with Russia. 

Spiralling prices and the central bank's tough monetary policy will limit the lending Ukraine's economy needs to regain its footing in 2015.