CPI up 1.7% mom in October, PPI down 1.4%

According to the State Statistics Committee, consumer prices rose 1.7% mom or 18.0% yoy in October. The increase was driven by prices for food & beverages, +1.1% mom, which hold 53.1% in CPI basket. In addition, the rise was influenced by the hryvnya depreciation (17% over October), which propped up prices for imported goods. Producer prices decreased for the second month in a row, by 1.4% since September, sending yoy PPI to 37.7% yoy down from its peak of 46.9% yoy in August. Andrii Parkhomenko: We reiterate our yearend CPI forecast of 21% yoy, but lower our 2008 PPI forecast to 31.0% yoy based on a more than expected fall in prices for metallurgy products and oil.