Consumer prices decline 0.4% mom in June

Consumer prices in Ukraine decreased 0.4% mom in June, implying that annual inflation equaled 6.9% yoy vs. 8.5% yoy in May, according to the State Statistics Committee data reported yesterday. Mykyta Mykhaylychenko: Overall inflation pressure remains weak due to still subdued domestic demand. Nonetheless, we expect inflation to accelerate somewhat in 2H10 on the back of utility retail tariff increases, which was one of IMF requirements for the new stand-by loan agreement.