Home
/
News
/

Ukraine consumer prices drop 0.7% m/m in July

Ukraine consumer prices drop 0.7% m/m in July

10 August 2018

Ukraine’s consumer prices dropped 0.7% m/m in July owing
to food and clothing, whose prices declined for the third straight month, the
State Statistics Service reported on Aug. 9. Annual inflation slowed to 8.9%
yoy from 9.9% yoy in June.

 

The decline in food prices accelerated to 1.9% m/m
(after a 0.5% m/m decrease in June), mostly due to a seasonal decline in prices
for fruits (-11.1% m/m) and vegetables (-12.4% m/m). Prices for eggs (-7.6%
m/m) and milk (-1.1% m/m) also continued to decline. Clothing and footwear
prices decreased 4.6% m/m (after a 2.4% m/m drop in June).

 

Other consumer prices grew, led by alcohol and
tobacco, which added 1.8% m/m in July (after 1.6% m/m growth in June). Prices
for transportation increased 0.7% m/m (after 0.6% m/m in June). Utility prices
climbed 0.5% m/m, while prices for household durables inched up 0.2%.

 

Core inflation (the consumer basket excluding goods
and services with the most volatile prices) slid 0.1% m/m in July, after
staying flat m/m in June. Annual core inflation slowed to 8.8% yoy growth from
9.0% yoy in the previous month.

 

Evgeniya Akhtyrko: July’s
deflation, fueled by cooling prices for widely consumed foods, is a positive
surprise for the economy. It provides a “safety cushion” to get through the
fourth quarter, when we expect consumer prices to swell again due to higher
utility bills (especially natural gas and heating prices) and a seasonal
decrease in food supply.

 

Given the current price trend, our projection of
consumer inflation at 8.9% YTD, or 11.8% yoy in 2018, looks quite attainable.

Latest News

News

23

02/2022

Separatists may claim entire territories of two Ukrainian regions

Russia has recognized “all fundamental documents” of the self-proclaimed Donetsk and Luhansk People’s Republics (DNR...

News

23

02/2022

U.K. to provide USD 500 mln loan guarantee for Ukraine as IMF mission starts

The British government is going to provide up to USD 500 mln in loan guarantees...

News

23

02/2022

MinFin bond auction receipts jump to UAH 3.5 bln

Ukraine’s Finance Ministry raised UAH 3.3 bln and EUR 7.2 mln (the total equivalent of...