"The inflation is objectively related to exchange rate and the administrative price growth. We assess the inflation for the current year to be at 26 percent," Yatsenyuk said during a government meeting.
The government also predicts the exchange rate to be at 21 hryvnias per dollar. Currently the rates stand at 25 hryvnias per dollar, according to Yatsenyuk.
In January, Ukraine's annual inflation rate reached 24.9 percent.
The country's authorities tried to rescue the deteriorating economy with international loans. Ukraine currently owes billions of dollars to international creditors, including the International Monetary Fund (IMF).
On December 31, Ukrainian President Petro Poroshenko signed a law on the state budget for 2015. The budget is based on an inflation rate of 13.1 percent. Yatsenyuk stated that the budget would be reviewed in February depending on negotiations with international financial institutions.
