Ukraine: Inflation falls to lowest level in nearly a decade
April 6, 2012
In March, consumer prices added 0.3% over the previous month, which came in a notch above the 0.2% increase seen in February. The reading mainly reflected higher transport prices, whereas prices for clothing and footwear decreased from the previous month. Owing to the relatively subdued monthly price increase, annual inflation dropped from 3.0% in February to 1.9% in March, which was below market expectations that had inflation at 2.1%. The figure represents the lowest rate since at least January 2003. Amid subdued inflation and faltering economic growth, on 23 March, the Central Bank lowered the discount rate by 25 basis points to 7.50%. The move represented the first adjustment since August 2010 and surprised most market analysts, which had expected interest rates to remain unchanged. The Central Bank expects inflation not to exceed 5.0% this year.