CPI down 0.1%, PPI up 0.7% in July

Ukraine’s State Statistics Committee reported yesterday that consumer prices declined 0.1% mom, but were up 8.5% YTD in July. The factors that contributed to the decline in CPI growth were a 0.2% decrease in food prices and 3.3% retreat in utility prices. Meanwhile, last month the producer price index rose 0.7% mom and 4.9% YTD, mostly driven by an increase in oil prices. Andrii Parkhomenko: Deflation in consumer prices is a usual event in Ukraine in summer months, when food prices seasonally decline. We expect that Ukraine will again see modest inflation in the fall. We reiterate our yearend forecasts of CPI growth at 15% yoy, and PPI at 11% yoy.