Ukraine consumer inflation slows to 0.9% m/m growth in April

Ukraine’s consumer price index (CPI) slowed to 0.9% m/m growth in April (+12.2% yoy) on the back of easing non-food prices, the State Statistics Service reported on May 10. In the prior month, CPI jumped 1.8% m/m (+15.1% yoy), driven by a 10.5% increase in clothing and footwear prices and a 5.0% rise in utilities.

In April, food prices kept accelerating at 1.2% m/m growth from 1.1% m/m in March. Transportation prices sped up 1.4% m/m from 0.7% m/m in the prior month. All other key CPI components slowed: education prices were flat vs. 0.2% m/m growth in March, utilities inched up 0.5% m/m, and clothing and footwear prices slowed to 0.9% m/m growth. Healthcare prices were almost unchanged at 0.5% m/m growth (vs. 0.4% m/m in March).

Alexander Paraschiy: April inflation was exactly what we predicted, driven by food prices. At the same time, prices cooled for the main inflation drivers of the recent past, utilities and clothing & footwear. We anticipate this sliding tendency to sustain itself throughout the year unless a poor harvest is reported in Ukraine (which is not likely). We are keeping our 2017 consumer inflation forecast unchanged at 9.0% YTD growth (+12.4% yoy).