Ukraine’s consumer price inflation decelerated to 14.6% y/y in October from 16.4% y/y in September on the back of a strong base effect (there was a significant hike in tariffs in October 2016). Compared to the previous month prices went up by 1.2% m/m, Raiffeisen Bank International (RBI) reported.
Food prices increased by 1.1% m/m owing to the reduction of supply of some products to the domestic market. Alcohol and tobacco prices increased by 1.3% m/m.
“Hryvnia devaluation and seasonality resulted in growth of clothes prices by 2.4% m/m in October. Moreover, FX market pressure and growth of global prices led to increase of oil and fuel prices by 4.4% m/m. There were no significant changes in the communal tariffs (+0.5% mom). Given unexpectedly high price growth in September, we see a significant risk for our current forecast of 11% y/y by the end of 2017,” RBI said in a note.