Inflation in Ukraine slowed to 2.1% in April

Inflation in Ukraine slowed to 2.1% in April
Inflation in Ukraine slowed to 2.1% in April
By bne IntelliNews May 11, 2020

Inflation in Ukraine slowed to 2.1% in April year on year from 2.3% in March, according to the State Statistics Service. Month-on-month inflation remained flat at 0.8% compared to March.

The National Bank of Ukraine's (NBU) major success in 2019 was to bring inflation down rapidly from the double digits it recorded during the recession. Inflation was 4.1% in 2019 and was expected to fall further this year.

The NBU improved its inflation forecast for 2020 at the end of January from 5% to 4.8%. However, in April, the NBU worsened it to 6% due the effects of the current crisis. According to the central bank, in the first half of this year, annual inflation will be 4.8%.

According to the State Statistics Service, underlying inflation in April this year fell to 0.4% after the jump to 1.3% in March, whereas before it had been falling for three consecutive months. Last April, underlying inflation was also 0.4%; as a result, annual inflation remained at 3.1%.

In April, in comparison with March of the current year, prices for food and non-alcoholic beverages in the consumer market increased 2.1%. Most of all, prices of buckwheat groats and fruits went up (18% and 12.8%). Prices for eggs, sugar, vegetables, pork, rice, beef, pasta, fish and fish products increased 9.4-1.1%. At the same time, poultry meat and lard fell by 2.6% and 1.3%.

Prices for alcoholic beverages and tobacco products increased 0.9%, which is linked to a rise in the price of tobacco products by 1.8%.

According to the statistics, in April 2020, a decrease in prices (tariffs) for housing, water, electricity, gas and other types of fuel by 3.2% was mainly due to the decline in the cost of natural gas by 11.9% and hot water, and heating by 5.3%.

The rise in prices in the healthcare sector by 2.1% was primarily due to the rise in price of pharmaceutical products by 2.9%.

Transport prices decreased 1.3%, mainly due to the reduction in the cost of fuel and lubricants by 9.0%. At the same time, car prices rose by 3.4%.