Ukraine CPI accelerates to 0.8% m/m in August on devaluation wave

Ukraine’s consumer prices accelerated 0.8% m/m (+14.2% yoy) in August compared to 0.4% m/m (+12.5% yoy) in the prior month, according to state statistics released on Sept. 5. The main factors were a decelerated drop in food prices (to -0.1% m/m vs. -0.7% m/m in July), coupled with accelerated prices for transportation (+3.9% m/m vs. 0.7% m/m) and healthcare (+1.5% m/m vs. 1.2% m/m). At the same time, utility rates slowed to +1.6% m/m (from +4.0% m/m) while education prices remained stable at +0.1% m/m.

Alexander Paraschiy: August’s devaluation has changed inflation prospects for the upcoming months. Transportation costs, which edged up on imported fuel prices, in turn inflated other prices. Imported commodities also contributed. Against this backdrop, we are revising our 2014 CPI estimate upward to 11.3% yoy (18.8% YTD) from 10.3% yoy (16.3% YTD) previously.