Inflation slows to 9.2% y-o-y in November

Consumer prices rose 9.2% y-o-y in November, down from 10.1% y-o-y in October, according to the State Statistics Committee of Ukraine. Mykyta Mykhaylychenko: The deceleration stemmed from a slowdown in food inflation from 13% y-o-y to 11.4% y-o-y (more than 50% of the CPI basket). We do not see inflation slowing further in the months ahead as recovering domestic demand, together with expected utilities tariff increases in 2011 will create inflationary pressure. Inflation in 2010 might now be below our current forecast of 10% and we expect it to fluctuate around that number going forward.