Expensive meat and cigarettes in Ukraine accelerated again inflation

Consumer inflation in Ukraine in July was 0.2% compared with June. Since the beginning of the year prices increased by 8.2%, the press service of the Cabinet of Ministers of Ukraine. Inflation in annual terms (compared to July-2016), the government does not. At the same time, based on data from the State statistics service, the figure was 15.9%. This is higher than it was in June.

The June inflation rate the national Bank has called the most high for the year. The regulator expected that in July Ukraine is waiting for deflation on a monthly basis, instead of which recorded price growth of 0.2%.

But, according to the head of the NBU Council Bohdan Danylyshyn, the situation is under control of the national Bank and the government.

“Given the slight revival of economic growth in 2016-2017, as well as a significant slowing of inflation over the past two years, indicators of “July to June” and “July to December” indicates that the situation is under control of the government, and within the inflation target approved by the Board of the National Bank of Ukraine. This is normal, given the significant slowdown of inflation expectations in Ukraine”, – said Danylyshyn.

At the same time, as pointed out by the state statistics Committee, in Ukraine, prices increased the most meat (5.1 per cent), rice, butter, bread, pasta (0,8 – 2,4%). Prices of alcoholic beverages and tobacco increased by 1.6%, primarily due to the rise in price of tobacco products by 3.3%. Cheaper eggs (-9%) and vegetables (-9,2%). A price decrease was recorded for clothing and footwear (-4,4%), as well as fuel and oil (1.1%). The growth of tariffs for housing, water, electricity, gas and other fuels 0.6% occurred, mainly due to the increase of tariffs for maintenance of houses and house adjoining territories 8.5%, Sewerage – by 1.4%, water – by 1.1%.

“At the end of the year, given that in August by July, there is always deflation, we can reach a single figure”, – predicts he.

Earlier, the experts predicted that inflation in 2017 may exceed the budgeted forecast of 8.1% and compared to last year.