The national Bank noted that inflation in Ukraine was higher than its forecasts
In November, inflation in Ukraine in annual terms was 13.6%. This was 1% less than it was in October, when the rate was 14.6%. However, the national Bank forecast a lower figure.
“The current dynamics of the consumer price index and its components exceeds the forecasted “Inflation report” for October 2017, and suggests that at the end of 2017 inflation more significantly deviates from the target level than previously estimated,” – said in the message NBU.
The regulator, citing data from the state statistics service said that “on a monthly measurement of consumer prices also slowed to 0.9% from 1.2% in October”.
The NBU is up from the projected rate of inflation explained by the fact that more actively growing prices on food products.
“Core inflation in November stood at 8.6% yoy (1.0% in monthly terms). More significantly than expected, prices rose for food products with a high degree of processing, reflecting spillover effects from the price increase on the corresponding raw food. In particular, the accelerated growth of prices for meat products remained high growth of prices for dairy products. Also accelerated the increase in the cost of services included in core inflation, under the influence of rising production costs and the revival of consumer demand”, – ascertain in Bank.
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The regulator also explained that in October and November, there was a weakening of the hryvnia on the currency market, and this has led to a slight acceleration of price growth for industrial goods is mostly imported (except apparel and footwear).
“In particular, the prices of medicines, medical products, household appliances, furniture, products for cleaning and personal care. At the same time, as in previous months, has slowed the growth in prices of clothing and footwear due to slower display their prices the dynamics of changes in the exchange rate (most of the sellers of clothes and shoes carry out the purchase of the goods several months before the start of the season),” – noted in the NBU.
Also growing prices for raw products – milk, meat. Not as intense, but still more expensive vegetables of borsch set. “At the same time decreased the price of sugar due to low world prices and significant supply in the domestic market, and good harvest continued drop in prices for buckwheat. But the growth of prices for fruits was accelerated primarily due to higher than last year, prices for citrus. Also increased the rate of growth of prices for eggs amid rising external demand and increasing export opportunities for Ukrainian producers of poultry products”.
“The growth of prices and tariffs, which are regulated administratively, is expected to have slowed (to 16.7% yoy) due to favorable base of comparison (in October-November last year, there was increase in tariffs for heating and hot water supply) and broadly in line with forecast. Also slowed the price increase on tobacco products, alcoholic beverages, and services of railway transport. At the same time continued acceleration of growth of prices for bread and services road passenger transport on the background of growth of their cost. The rising price of fuels (of 17.7% yoy) was also higher than was projected, as a result of increasing oil prices and the weakening of the hryvnia to Euro (fuel excise duties established in euros),” – noted in the NBU.
We will remind, the head of the NBU Council offers to return to government regulation of food prices to curb inflation.
- National Bank
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The national Bank of Ukraine
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