Ukraine Inflation


Inflation maintains downward trend

In February, consumer prices added 0.9% over the previous month, which came in a notch below January's 1.0% rise. The price increase was also nearly half the 1.9% increase observed in the same month last year, driving annual inflation down a full percentage point to 7.2%, which was broadly in line with market expectations. The monthly price hike was mostly due to higher prices for housing, water, electricity, gas and other fuels, as the government increased electricity tariffs by 30%. In contrast, food inflation slowed from December. Nevertheless, the core inflation index, which excludes volatile items such as food and fuel, added 0.6% month-on-month, driving the year-on-year core rate to 7.2% (December: 7.4% yoy). The government has set an inflation target of 8.9% for this year.


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