Ukraine: May inflation eases from April's over-10-year high
June 8, 2015
Consumer prices increased 2.2% in May over the previous month, which was notably below the 14.0% rise registered in April. May’s significant deceleration was driven by a decrease in the prices of transport as well as a slowdown in the growth of prices of food and non-alcoholic beverages. In contrast, the prices of housing, water, electricity, gas and other fuels recorded a significant rise in May. The jump largely reflects the government’s reduction of the state energy subsidy, one of the IMF mandated reforms to secure March’s USD 17.5 billion bailout.
Inflation eased slightly in May, interrupting the surging upward trend that has been in place for over a year. Inflation fell from April’s over-10-year high of 60.9% to 58.4% in May. Despite the moderation, inflation remains at historically high levels and has skyrocketed since the onset of the military conflict in Eastern Ukraine. Annual average variation in consumer prices increased from 25.3% in April to 29.2% in May.