2012 yoy CPI lowest in 20 years
8 January 2013
Ukraine’s consumer prices declined 0.2% yoy in December (+0.6% yoy in 2012), according to data released by UkrStat on Jan. 6. Food prices remained the main factor, falling 2.3% yoy on the back of sliding prices for bread, dairy products, fruits, vegetables, and sugar. All non-food items except for clothing (-2.3% yoy) were on the rise with prices for alcohol and tobacco (+7.0% yoy), education (+4.4%) and transportation (+4.1%) growing the fastest.
Alexander Paraschiy: 2012 consumer inflation was the lowest in the last 20 years, beating the last record of +0.8% yoy in 2002. No doubt, administrative regulations boosting food supplies leading up to the October parliamentary elections influenced the outcome. Hryvnia stability – as well as unchanged natural gas and heating tariffs – also contributed to this result. We expect some acceleration in consumer prices in 2013 to 6.8% in 2013. Unfrozen IMF cooperation and an expected decline in the hryvnia’s value promise a faster CPI increase. Food prices should increase in 1H13, echoing this season’s harvest drop.
