Ukrainian CPI up 1.3% mom, PPI 3.7% mom in May

Ukrainian consumer inflation slowed to 1.3% mom in May, vs. growth of 3.1% mom in April, but accelerated to 31.1% yoy from 30.2% at the end of April, the State Statistics Committee reported on Friday. The producer price index rose 3.7% mom, or 24.2% YTD in May, driven mainly by high prices for oil and metallurgy goods. Andrii Parkhomenko: Food remained the key driver of CPI (+1.9% mom), although prices for several food groups (i.e. dairy, eggs, and vegetables) were down. We believe food prices will stop rising in coming months and may even trend downward, on the back of the plentiful harvest projected for this summer. We retain our forecast of yearend CPI at 21.0% yoy.