CPI up 0.9% mom, PPI 1.9% mom in October

Ukraine’s consumer price index rose 0.9% mom in September and 10.1% YTD, the State Statistics Committee announced yesterday. The producer price index grew 1.9% mom last month and 12.7% YTD. Mykyta Mykhaylychenko: Annual inflation decelerated to 14.1% in October from 15.0% in September. Given the possibility of increasingly negative sentiment toward the hryvnya and likely UAH depreciation through yearend, we do not expect the continuation of rapid inflation deceleration in the coming months. We forecast annual inflation in 2009 staying in the range 14-15%.