Ukraine Inflation


Inflation plummets to the lowest level in over eight years

In September, consumer prices added 0.1% over the previous month, which contrasted the 0.4% decline in August. The increase was the result of higher prices across the board, which more than offset the slight price drop in food and non-alcoholic beverages prices (-0.3% month-on-month). Meanwhile, as the September reading represented only a fraction of the 2.9% rise seen in the same month last year, when a summer drought boosted food prices, annual headline inflation plummeted from 8.9% in August to 5.9% in September, its lowest level since August 2003. Going forward, both the government and Consensus Forecast panellists see inflation rising as the 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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