INFLATION AS A MEASURE OF ECONOMIC RESILIENCE IN UKRAINE DURING THE RUSSIAN INVASION

Abstract

Introduction. Russia's full-scale military invasion of Ukraine in 2022 caused an unprecedented impact on the country's economy, resulting in a variety of measures to mitigate the effects of the conflict on the financial system. During this crisis, the National Bank of Ukraine (NBU), responsible for conducting monetary policy in the country, plays a key role in managing inflation and maintaining economic stability. Since inflation is a critical indicator of Ukraine's economic stability, it took on new meaning in the context of the invasion. Thus, it is particularly important to analyze the relationship between inflation and various economic indicators in the new Ukrainian tragic reality, as well as the measures introduced to manage inflation and maintain economic stability.

Materials and methods. The information base of the research was made up of official analytical materials of the NBU, scientific articles of scientists, and analytics obtained through Internet resources. Several research methods are used in the article: generalization, analysis and synthesis. The generalization was used to identify inflation as a critical economic indicator affected by the invasion. The analysis is used to examine the factors that have contributed to the growth of inflation and economic instability, and to examine the policy measures that have been taken to mitigate them. Thanks to the synthesis, the research results and proposals for potential actions that can contribute to the improvement of the economic situation were combined.

Results and discussion. The war in Ukraine in 2022 have a devastating effect on the economy and the lives of Ukrainians. The inflation rate, which is an important reflection of the country's economic condition, increased significantly because of the war. The National Bank of Ukraine was forced to make significant changes to its monetary policy, in particular to fix the exchange rate of the hryvnia to foreign currencies. The main monetary operation of the bank is now currency interventions. The ongoing war has caused extremely serious damage to Ukraine's infrastructure; reduction of the country's production potential; increase in unemployment, shortage of goods and reduction in exports. The war also disrupted transportation infrastructure, resulting in increased transportation costs and disruptions in supply chains. All this creates extreme inflationary pressure.

To overcome the economic challenges facing Ukraine, it is important to focus on reducing the country's dependence on imports and attracting additional capital. Development of the domestic economy, support of small and medium-sized businesses will help create a significant number of jobs, reduce unemployment and increase spending by the population. At the same time, efforts to fight corruption and improve the rule of law can help continue the course to restore public trust and attract foreign investment. All these actions will significantly contribute to the support of the economy in the current times of serious challenges.

Conclusion. The war became a significant test for the country and every individual Ukrainian. Destructive impact on the country's economy, caused a spike in inflation. Despite the challenges, Ukraine has opportunities to rebuild and, in the future, develop a more sustainable economy by focusing on key issues that will lay the foundation for future gains.