Ukraine: Inflation drops to six-month low in December
Consumer prices dropped 0.27% from the previous month in December, following the 0.54% fall seen in November. The result was largely due to the result of falling transport costs, which outweighed slightly faster growth in food and beverage costs.
Inflation came in at 10.0% in December, down from November’s 10.3%. December’s result represented the lowest inflation rate since June and marked a continuation in its downward trend. Annual average inflation closed at 9.3% in December, rising notably from 2020’s 2.7% reading. Lastly, core inflation ticked up to 7.9% in December, from November’s 7.7%.
Commenting on the outlook, economists at Goldman Sachs remarked:
“We think that headline inflation will continue to ease gradually, led primarily by easing food inflation. On our baseline projections, we see inflation easing to around +8.0% yoy by end-Q1 2022, to around +7.0% yoy by mid-year, and to +5.5% yoy by end-2022. By contrast, we expect core inflation to remain stickier in the near term, and for the bulk of the core inflation decline to take place later in the year. We continue to view the balance of risks to inflation as skewed to the upside given the pro-inflationary external backdrop.”