Ukraine CPI rises 12.4% YTD in 2016
10 January 2017
Ukraine’s consumer price growth slowed to 0.9% m/m (12.4% yoy) in December from 1.8% m/m (12.1% yoy) in the prior month, the State Statistics Service reported on Jan. 6. For the year, consumer prices rose 12.4% YTD, or 14.9% yoy, owing to utilities (47.2% YTD, 44.5% yoy) and food (3.3% YTD, 9.9% yoy). Inflation in 2016 substantially slowed down from 43.3% YTD and 48.7% yoy in 2015.
Alexander Paraschiy: Year-end inflation is close to what we estimated, with IMF-imposed utlity price hikes being the main factor. In 2017, we expect consumer prices will slow further on the back of a weakening of national currency, as well as a 28% hike in electricity rates for households in March. We project CPI will grow 7.8% YTD(10.5% yoy) in 2017.
