Ukraine Inflation


Ukraine: Inflation breaks downward trend

April 7, 2011

In March, consumer prices added 1.4% over the previous month, which was well above the 0.9% price rise observed in both the previous month and March last year. As a result, annual inflation picked up from 7.2% in February to 7.7% in March, ending the downward trend in place since October last year. The monthly price increase was mainly driven by higher prices for food and non-alcoholic beverages (+1.8% month-on-month) as well as for transport (+2.0% month-on-month). Consequently, the core inflation index, which excludes volatile items such as food and fuel, added a more subdued 0.8% over the previous month, driving the year-on-year core inflation rate to 7.1% (February: 7.2% yoy). The government anticipates year-end inflation to rise to 8.9% this year before moderating next year to 7.9%.


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