Ukraine inflation speeds up to 3.8% yoy in November

Ukraine’s consumer inflation sped up 3.8% yoy in
November from 2.6% yoy in the prior month, the State Statistics Service
reported on Dec. 9. Consumer prices grew 1.3% m/m in November (vs. a 1.0% m/m
increase in October).

Food prices advanced 1.4% m/m in November (after
increasing 1.1% m/m in October). In particular, prices jumped for eggs (6.4%
m/m), vegetables (9.4% m/m), and sugar (7.7%). At the same time, prices for
fruits declined 5.1% m/m.

Prices for housing surged 8.0% m/m (vs. a 4.4% m/m
increase in October) due to a leap in natural gas prices by 26.7% m/m. Prices
for transportation climbed another 0.9% m/m, being driven by increasing prices
for fuel.

At the same time, prices for clothing and footwear
dropped 2.5% m/m (after increasing 2.0% m/m in October).

Evgeniya Akhtyrko: Consumer
inflation is gaining momentum, fueled by the seasonal growth of prices for
basic food items. A leap in natural gas prices for households contributed
significantly to the consumer basket in November.

Ongoing consumer demand will merely fuel consumer
inflation even further, causing it to land at 4.8% YTD in 2020. In 2021, it
will speed up to 6.1% YTD.