Ukraine: Inflation continues its upward trend in May, reaches an almost three-year high
June 10, 2014
In May, consumer prices increased 3.8% over the previous month, which was up from the 3.3% rise registered in April and represented the largest monthly increase since March 2008. The increase was broad-based in May, with all the components of the index rising over the previous month. The largest increases were registered in housing, water, electricity, gas and other fuels (due to the rise in prices for fuels and lubricants). In addition, prices for transport as well as for food and non-alcoholic beverages also registered strong increases.
Annual inflation jumped from April’s 6.9% to 10.9% in May, which marked the highest rate since June 2011. As a result of the acceleration in recent months, along with developments in the political sphere and in the foreign exchange market, inflation is still above the Central Bank’s 4.0%–6.0% target range for 2013–2014. Meanwhile, annual average variation in consumer prices increased from April’s 0.9% to 1.9% in May.