In Ukraine slowed down inflation. The national Bank explained the nuances
In Ukraine slowed down inflation. The national Bank explained the nuances
© Reuters
At the end of the year inflation will reach 12%.
In November, consumer inflation was 1.8%. In annual terms, according to the state service statistics, she slowed down to 12.1%.
For 2016 inflation is expected to be 12%, predicts the national Bank.
“The slowdown of annual inflation (compared with 12.4% in October) has occurred thanks to the rapid inflation of raw food that was more substantial than predicted. However, a few more in the forecast was the growth of prices and tariffs, which are regulated administratively, as well as core inflation”, – stated in the message NBU.
See also: Bankopad. The NBU has estimated how many banks survived after sweeps
The main explanations of inflation from the national Bank:
1) Annual core inflation in November slowed to 6.2 per cent (in monthly terms, core inflation was 0.5%). The increasing volatility in the foreign exchange market in mid-November had a moderate impact on core inflation. Although month-on-month, growth was observed in prices of certain imported goods, in annual terms their growth slowed down (including clothing and footwear, household appliances, audio equipment, photographic equipment and equipment for information processing, pharmaceutical production, medical products and equipment, vehicles). Also restrain core inflation in November, a moderate increase in the price of market services. At the same time, against the background of rise in price of milk and sugar is rapidly increased prices for food products with a high degree of processing (hard cheeses, pastry products, cakes, etc).
2) rising prices for raw food products slowed to 1.4% yoy (1.1% in monthly terms). This was facilitated primarily supply factors. In particular deepened the decline in prices for vegetables and fruits is influenced by how high the offers separate of the domestic production and imported goods. So, the restrictions that Russia has imposed on imports of fruits from Egypt, led to lower prices for citrus. Slowed down the growth of prices for meat and meat products, in particular, due to restrictions on the export of pork amid the outbreak of African swine fever. At the same time, continued to accelerate the growth of prices for milk and dairy products due to stronger demand from the processors, including due to the high volume of exports of dairy products.
3) the Growth of prices and tariffs, which are regulated administratively, accelerated to 32.8% in annual terms (4.0% in monthly terms). The acceleration resulted in the increase of tariffs for services of housing and communal services, particularly heating, water and sewage. Continued to accelerate the growth of prices of tobacco products and alcoholic beverages.
4) fuel Prices accelerated to 18.1% in annual terms (month-on-month measure rose 1.8 percent). This is due to the increase in oil prices on world markets in October.
The national Bank also predicted the effect of increasing two times the minimum wage on GDP.