Page 26 - UKRRptJun21

The growth of food prices slowed to 1.2% m/m in April after jumping 2.1% m/m. Prices grew the most for vegetable oil (10.0% m/m), sugar (5.0% m/m) and bread (1.6% m/m). At the same time, prices for vegetables and fruits slid 1.3% m/m and 1.0% respectively; prices for eggs declined 0.6% m/m. Alcohol and tobacco added 0.9% m/m in April (vs. 1.3% m/m growth in March).
Prices for clothing and footwear advanced 0.9% m/m, slowing from a 12.7% m/m surge in March. Prices for transportation grew 0.6% m/m in April (after increasing 1.8% in March).
Prices for housing and utility services inched up 0.4% m/m (after remaining flat in March), driven by increased tariffs for natural gas and prices for housing maintenance.
“Monthly inflation in April was quite moderate. The growth of food prices slowed down amid price declines for fruits and vegetables caused by seasonal increases in supply. The inflation trend in [the] upcoming months will mostly depend on food prices. A seasonal increase in the supply of fruits and vegetables usually results in deflation during summer months. The prices for other important food staples, like eggs, sugar, vegetable oil, are likely to stabilise after a recent soar. We expect consumer inflation to reach 8.0% y/y in 2021 (vs. 5.0% y/y in 2020),” an analyst at the Kyiv-based Concorde Capital brokerage said in a research note.
26 UKRAINE Country Report XXXX 2018 www.intellinews.com