One of the reasons for the increase in prices in Ukraine in 2017 was the increase in wages, which, in turn, was affected by labor migration. This was told in an interview today by the Deputy Head of the National Bank of Ukraine (NBU) Dmitry Sologub. "The growth of wages in the economy, which exceeded expectations, is explained by migration trends. Now many people say that they are unfavorable for Ukraine. People of working age leave to work in other countries, this creates pressure on the labor market in Ukraine - employers have to raise salaries to keep workers, "explained Sologub. Thus, labor migrants indirectly influenced the growth of inflation. But at the same time, the salaries of labor migrants who send currency transfers to Ukraine have become one of the main factors in curbing inflation. "Economics is a complex system. If in one place comes, then in another, respectively, decreases. And people often forget about it. An example with a work force is another illustration. Indeed, labor migration increases the pressure on domestic salaries. Salary growth is right, so it should happen. But the growth of salaries should correspond to the growth of productivity. And if a person produces as much as before, but wants to get more, because otherwise he will go to Poland - that's the kind of approach that puts pressure on prices.

On the other hand, increasing the flow of migrants abroad leads to the fact that they return more money here, and this leads to strengthening the exchange rate, "Sologub said.. In sum, he said, the effect for inflation was ambiguous. "It is important to consider the economic situation in the complex. Inflation of 13.7% is, of course, a lot. But on the other hand, if we look at the overall macroeconomic situation last year, it does not look so bad. Yes, it could be much better. But in general, it is quite stable, "- summed Sologub.

Original article: "Zarobitchane" influenced price growth in Ukraine - NBU.