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CPI declines to 5.4% y-o-y in October

CPI declines to 5.4% y-o-y in October

8 November 2011

CPI declined to 5.4% y-o-y in October (from 5.9% in September) as prices remained flat m-o-m, according to UkrStat. Svetlana Rekrut: The plentiful harvest has eased supply-side inflationary pressures considerably since August, restraining food price growth to just 2.6% y-o-y in October. On the demand side, weakening growth in real salaries and muted retail lending should help keep inflation in check in the coming months. We believe the favorable trend in consumer prices recently gives the government a window of opportunity to raise household gas tariffs this year and still be able to contain CPI in the single digits.

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