Ukraine CPI declines 0.4% yoy in August

Ukraine’s consumer prices decreased 0.4 yoy (-0.7% m/m) in August, according to state statistics released on September 6. Deflationary food prices remained the defining factor, falling 2.6% yoy last month, yet other CPI components kept rising: education +3.9% yoy, transportation +2.3% yoy, healthcare +2.2% yoy, and utilities +0.3% yoy.

Alexander Paraschiy: Though we anticipated sliding food prices on the back of the new grain harvest, the August price drop exceeded our estimates. Now it looks like the annual food index decline will be at least 2.6% yoy, causing overall 2013 CPI to decrease 0.4% yoy (-0.1% yoy as we previously estimated).