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Ukraine sees 3rd straight month of deflation in July

Ukraine sees 3rd straight month of deflation in July

7 August 2012

Consumer prices declined in July 0.2% mom and 0.1% yoy (vs. -0.3% mom and -1.2% yoy in June), marking the third straight month of deflation in Ukraine. The main drivers were prices for fruits, vegetables, and sugar (-9.4%, -44.0% and -37.5% yoy, respectively), while prices for almost all other food items were above the levels of last July.

Vitaliy Vavryshchuk: With projections of a smaller grain harvest this year starting to emerge, food prices are likely to reverse course already in August, which could bring inflation back to positive territory by September. We see consumer inflation at 5.9% in 2012, with food prices the key contributor.

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