Ukraine: Inflation descends sharply in July
August 5, 2011
In July, consumer prices dropped 1.3% over the previous month, which contrasted the 0.4% price increase tallied in June. The monthly decline was mostly the result of lower prices for food and non-alcoholic beverages (-2.6% month-on-month) amid a sharp drop in vegetable prices. Seasonal factors usually prompt consumer prices to drop in July over the previous month. However, the print was well below the 0.2% price drop observed in same month last year, pushing annual inflation down from 11.9% in June to 10.6% in July. Meanwhile, core inflation, which excludes volatile items such as food and energy, maintained its upward trend by rising from 8.3% in June to 8.6% in July. The government anticipates inflation to moderate to 8.9% by the end of year and to drop further to 7.9% next year.