Ukraine’s consumer inflation increased to 2.5% year on year in August from 2.4% y/y in the prior month, the State Statistics Service reported on September 9. Consumer prices dropped 0.2% month on month in August compared with a 0.6% m/m decline in July.
Food prices slid 1.5% m/m in August after declining 1.4% m/m in July. Some declined prices such as in the case of vegetables went to -13.5% m/m. Others were fruits -8.4% m/m, sugar -0.9% m/m, while on the other hand, prices for eggs climbed 3.4% m/m, and meat by 1% m/m. Prices for clothing and footwear continued to slide, losing 3% m/m in August after falling 4.8% m/m in July.
Prices for housing and utilities jumped 5.7% m/m compared with a 1.4% m/m increase in July due to a leap in natural gas prices by 37.7% m/m. Prices for transportation climbed another 1.2% m/m in August after the same monthly growth in the prior month, as prices for fuel rose.
"The further slide in prices of clothing and footwear implies that Ukrainian consumers are not likely to intensify their expenditures for non-staples as the overall economic decline is ongoing. We expect consumer inflation will accelerate to 5.5% YTD in 2020," an analyst at the Kyiv-based Concorde Capital brokerage said in a research note.