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Ukraine consumer prices decline 0.8% yoy in April

Ukraine consumer prices decline 0.8% yoy in April

8 May 2013

Ukrainian consumer prices declined in April at the same pace as a month ago at 0.8% yoy (0.0% m/m), according to state statistics released on May 7. Food prices, down at -3.1% yoy in April, continued dragging CPI. Other CPI components were on the rise: education +3.7% yoy, healthcare +1.9% yoy, transportation +0.7% yoy and utilities +0.3% yoy. 

Alexander Paraschiy: Continued food deflation and a very probable good grain harvest in 2H13 promise low consumer inflation in 2013.  As we’ve seen, an IMF loan doesn’t interest Ukrainian authorities under conditions of easy access to external debt markets. That means that no increase in natural gas tariffs should be expected in the near future and now we should not expect devaluation at least until September when a seasonal devaluation preassure might reappear. In such conditions, the CPI has a good chance to fall near 0.8% yoy in 2013.

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