Inflation in Ukraine is expected to hit 30% and may continue to rise if money printing continues
DW: Ukraine battles to avoid hyperinflation as war costs soar
Ukraine's central bank has been de facto printing money to pay its troops, but the measure is unsustainable. More international support is vital, but how much new cash could be raised domestically?
As the war against Russia enters its seventh month, Ukraine is stuck between a financial rock and a hard place as it seeks to stay afloat while fighting off Moscow's invading forces.
Tax revenues have plummeted due to an economy in free fall while military spending has skyrocketed, leaving the government facing a budget shortfall of $5 billion (€5.02 billion) per month.
To make up for the lack of cash, the country's central bank has effectively been printing money — buying government bonds to the tune of $7.7 billion over the past six months. The Financial Times reported that the printing presses effectively created $3.6 billion in June alone.
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WNU Editor: Ukraine is not the only country in Europe facing inflationary problems .... Euro Zone Inflation Hits Another Record of 9.1% as Food and Energy Prices Soar (CNBC).
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