Ukraine consumer prices increase 1.7% m/m in October

12 November 2018

Ukraine’s consumer prices increased 1.7% m/m in October, mostly owing to food, clothing and transportation, the State Statistics Service reported on Nov. 9. Annual inflation accelerated to 9.5% yoy from 8.9% in September.

 

Food prices grew 1.4% m/m (after 1.6% m/m growth in September), mostly due to a seasonal increase in the prices for vegetables (8.8% m/m), bread (2.7% yoy), and milk (3.6% yoy). At the same time, prices for fruits continued to decline, falling by 4.6% m/m. In addition, prices for sugar dropped 2.3% m/m.

 

Prices for clothing and footwear added 2.6% m/m in October (after surging 8.6% m/m in September). Prices for transportation advanced 3.1% m/m (after 2.8 m/m in September) mostly due to a fuel price surge. In addition, prices for alcohol and tobacco increased 2.3% m/m and continued to adjust to a hiked excise duty.

 

Core inflation (the consumer basket excluding goods and services with the most volatile prices) slowed to 1.3% m/m in October from 1.9% m/m in September. Annual core inflation declined to 6.9% yoy from 8.7% yoy.

 

Evgeniya Akhtyrko: October growth of consumer prices was mostly in line with the usual trends, particularly seasonal price gains for food and clothing. At the same time, rapidly growing transportation and alcohol and tobacco prices added some more boost this year.

 

Meanwhile, slowing core inflation is a good sign. Should this component stay in a low range, overall consumer inflation will be restrained.

 

The updated forecast of Ukraine’s central bank sees 2018 consumer inflation at 10.1% YTD.