Inflation accelerated to 10.5% y-o-y in September

Consumer inflation in Ukraine accelerated to 10.5% y-o-y in September vs. 8.3% y-o-y in August. The acceleration in inflation was driven by accelerating food price increases (to 13.2% y-o-y in September from 8.8% y-o-y in August) fueled, apparently, by harvest declines and further growth in budget social expenditures (+46% y-o-y in 8M10). On top of that, increasing excise rates resulted in faster alcohol and tobacco prices increases, which contributed an additional 0.2 pps (or around one tenth) to inflation acceleration in September.