Inflation decelerates to 10.1% y-o-y in October

Consumer inflation in Ukraine decelerated to 10.1% y-o-y in October, from 10.5% y-o-y in September, according to the State Statistics Committee. Mykyta Mykhaylychenko: The deceleration came across a wide range of items, including foods, utilities and other services. We do not expect inflation to decelerate significantly more in coming months as the upward pressure on prices will come from recovering domestic consumer demand as well as from higher inflation and UAH depreciation expectations, registered in 3Q10, according to a recent NBU survey. Hence, we see inflation staying within 10%-11% by end-2011, which will still be below +12.3% in 2010.