Ukraine CPI slows to 1.8% m/m in November
9 December 2016
Ukraine’s consumer price index slowed in November to 1.8% m/m (12.1% yoy, 11.4% YTD) growth from 2.8% m/m (12.4% yoy) in the prior month, according to state statistics reported on Dec. 8. Utilities prices swelled 5.3% m/m owing to 22.0% m/m growth in heating rates. Other sources of inflation were transportation costs (1.1% m/m), food (1.0% m/m), healthcare and education (0.3% m/m) each.
Alexander Paraschiy: November inflation was above our expectations and CPI has already exceeded our year-end forecast of 10.5% YTD. Now we expect CPI will increase 12.3% YTD (+14.9% yoy) in 2016.
For 2017, we expect consumer inflation slowing amid no heating rate increases through the year. An electricity rate hike by an extra 28% is planned for March, with no other government price adjustments on the horizon. We project CPI to grow 7.8% YTD (8.9% yoy) in 2017.
