Inflation in Ukraine slowed to a six-year low

According to the state statistics service, inflation in 2019 slowed down to 4.1%. This is only 0.1% above the lower range of the target corridor of the national Bank of Ukraine — 5% +/- 1 PP.

Инфляция в Украине замедлилась до шестилетнего минимума

In December, consumer prices in Ukraine fell by 0.2% compared with November, from the beginning of the year grew by 4.1%. This is evidenced by the State statistics service.

Core inflation in December 2019 compared with November amounted to -0.3 percent for the year as a whole is 3.9%.

In the consumer market in December prices for food and non-alcoholic beverages remained unchanged in General. While 2,4-0,5% cheaper poultry meat, rice, sugar, fruits, sunflower oil, fish and pasta.

In the same time 1.7-0,3% have risen in price milk, sour cream, bacon, cheese, vegetables, eggs, butter, beef, bread. Prices of alcoholic beverages and tobacco increased by 0.8% due to price increase of tobacco products by 1.6%.

Clothing and footwear fell by 3.4%.In particular, apparel — 3.5% footwear — by 3.3%. The decline in prices (tariffs) for housing, water, electricity, gas and other fuels of 2.3% was mainly due to the decline in natural gas prices by 11.2%.

Prices for transport in General decreased by 0.8% due to the cheaper cars by 2.6% and fuel and lubricants by 1.2%

The last time such a low level of inflation was observed at the end of 2013. Then, consumer prices rose by only 0.5%.

  • In early December, the NBU said about the “strong disinflationary trend”, and predicted lower inflation for the year to 6% compared to 9.8 percent in 2018 and 13.7% in 2017.
  • According to the calculations of the NBU, inflation by the end of 2019 was down to 6.3%, and by the beginning of 2020 to enter the target range (5% ± 1 p. p.) and reach the medium-term objective of 5% at the end of 2020.
  • In November, consumer prices in Ukraine rose by 0.1% compared with October, November prices in Ukraine grew by 0.7%, same as in September. In September, after three months of deflation in Ukraine returned to the inflation. In August, consumer prices fell by 0.3% compared with July. In June this year, the state statistics Committee fixed deflation: prices compared to may decreased by 0.5%.
  • Ukraine dropped out of the top 20 countries with the highest inflation. Then in July, consumer prices decreased 0.6%.