CPI up 1.1%, PPI 1.4% in June

Ukraine’s State Statistics Committee said yesterday on its website that consumer prices grew 1.1% mom, 15.0% yoy, and 8.6% YTD in June. Items that contributed to the CPI growth were tobacco products (+19.7% mom), fuel (+8.2% mom), and utilities (+4.1% mom). Meanwhile, food products that account for 53.1% of the CPI basket only increased 0.1% mom in June. Producer price index increased 1.4% mom, mostly due to rise in prices in oil processing industry (+16.1% mom) and utilities (+3.9% mom). Producer prices in most other sectors were virtually unchanged in June. Andrii Parkhomenko: We reiterate our yearend forecast of CPI and PPI at 15% and 11%, respectively. Our estimates are built on an assumption that the government will not hike natural gas prices for local consumers in 2009 (for more information on that, see our monthly macroeconomic overview published on July 2).