Ukraine consumer inflation reaches to 8.4% in April

Annual inflation in Ukraine reached 8.4% yoy in March,
slightly slowing from 8.5% yoy in March, the State Statistics Service reported
on May 7. Ukraine’s consumer prices increased 0.7% m/m in April after
increasing 1.7% m/m in March.

The growth of food prices slowed to 1.2% m/m in April
after jumping 2.1% m/m. Prices grew the most for vegetable oil (10.0% m/m),
sugar (5.0% m/m) and bread (1.6% m/m). At the same time, prices for vegetables
and fruits slid 1.3% m/m and 1.0%, respectively; prices for eggs declined 0.6%
m/m. Alcohol and tobacco added 0.9% m/m in April (vs. 1.3% m/m growth in
March).

Prices for clothing and footwear advanced 0.9% m/m
slowing from a 12.7% m/m surge in March. Prices for transportation grew 0.6%
m/m in April (after increasing 1.8% in March).

Prices for housing and utility services inched up 0.4%
m/m (after remaining flat in March), driven by increased tariffs for natural
gas and prices for housing maintenance.

Evgeniya Akhtyrko: Monthly
inflation in April was quite moderate. The growth of food prices slowed down
amid price declines for fruits and vegetables caused by seasonal increases in
supply.

The inflation trend in upcoming months will mostly
depend on food prices. A seasonal increase in the supply of fruits and
vegetables usually results in deflation during summer months. The prices for
other important food staples, like eggs, sugar, vegetable oil, are likely to
stabilize after a recent soar.

We expect consumer inflation to reach 8.0% yoy in 2021
(vs. 5.0% yoy in 2020).