Inflation slows to 10.6% y-o-y in July

Ukraine’s consumer price index rose 10.6% y-o-y in July, down from 11.9% y-o-y in June, according to the State Statistics Committee of Ukraine. Svetlana Rekrut: The deceleration stemmed from a slowdown in food inflation to 9.6% y-o-y from 11.7% y-o-y (more than 50% of the CPI basket) given a seasonal decline in vegetable and fruit prices. The leaders in price growth were utility services and transport, at +22.3% y-o-y and +21.0% y-o-y, respectively. We see inflation slowing further in August-September given a seasonal decline in prices on the new harvest while utility and fuel prices should continue to put pressure on the index for the rest of the year and will mainly continue to be dependent on government policy.