Ukraine Inflation


Inflation falls further and reaches new record-low since 2003

In October, consumer prices remained flat over the previous month, which came in below the already subdued 0.1% increase recorded in September. The modest monthly print was mainly driven by a drop in food prices, which declined for the fourth month in a row. Moreover, as the flat reading came in below the 0.5% rise seen in the same month last year, annual headline inflation continued to moderate, falling from 5.9% in September to 5.4% in October, which represents the lowest level since May 2003. Both the government and Consensus Forecast panellists expect inflation to rise in the months ahead as a favourable base of comparison is left behind. The government expects inflation to close this year at 8.9% and then to fall to 7.9% next year.


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