Ukraine: Inflation drops for the fourth consecutive month
February 7, 2011
In January, consumer prices added 1.0% over the previous month, which came in slightly above December's 0.8%. However, the price climb was almost half the 1.9% increase observed in the same month last year, which pushed annual inflation down to 8.2% (December: 9.1% year-on-year), beating market expectations that had annual inflation at 8.8%. The monthly price hike was primarily fuelled by higher food prices, in particular, vegetables (+6.6% month-on-month). In addition, higher prices for heating also contributed to the monthly increase. As a result, the core inflation index, which excludes volatile items such as food and fuel, added a more subdued 0.3% mom, falling to an annual rate of 7.4% yoy (December: 7.9% yoy). The government has set an inflation target of 8.9% for this year.