Ukraine CPI flat yoy in July

Ukraine’s consumer prices were flat yoy (-0.1% m/m) in July, according to state statistics released on August 6. Food prices extended their deflationary trend in July, dropping 1.6% yoy and marking the 17th consecutive month of food deflation. On the other hand, inflation continued in other key CPI components: education +4.0% yoy, transportation +2.0% yoy, healthcare +1.7% yoy, and utilities +0.3% yoy.

Alexander Paraschiy: A positive outlook for the grain harvest was the biggest contributor to sliding food prices. As for the year’s remainder, we see no other sources of inflation except currency devaluation risks. Against this backdrop, we are lowering our 2013 food consumer price index estimate to -0.1% yoy (from +0.1% yoy), thereby leading us to downwardly revise our overall 2013 CPI estimate to +0.1% yoy (from +0.8% yoy).