Ukraine Inflation


Inflation falls to lowest level since 2003

In December, consumer prices rose 0.8% over the previous month. The reading nearly tripled November's 0.3% increase but came in a notch below the rise of 0.9% tallied in December 2009. As a result, annual inflation inched down to 9.1% (November: 9.2% year-on-year), which represented the lowest end-of-year rate of inflation since 2003. The monthly price hike was fuelled primarily by higher food prices, in particular, vegetables, which rose +3.8% month-on-month. Consequently, the core inflation index, which excludes volatile items such as food and fuel, added a more subdued 0.6% mom, closing the year at 7.9% yoy. The government has set an inflation target of 8.9% for this year.


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