Page 19 - UKRRptNov20

4.2​ Inflation 4.2.1​ CPI dynamics
Inflation remains low and even fell a little in September to 2.3% from 2.5% in August, largely due to an abundance of fruit and veg the price of which fell sharply.
Ukraine’s consumer inflation slowed to 2.3% y/y in September from 2.5% y/y in the prior month​, the State Statistics Service reported on October 9. Consumer prices grew 0.5% m/m in September (vs. a 0.2% m/m decline in August).
Food prices slid 0.6% m/m in September (after declining 1.5% m/m in August). In particular, prices declined for vegetables (-7.0% m/m) and fruits (-8.9% m/m). At the same time, prices for eggs jumped 7.3% m/m, and for sugar inched up 1.6% m/m.
Prices for clothing and footwear jumped 7.9% m/m (after falling 3.0% m/m in August). Prices for housing and utilities advanced 3.7% m/m (vs. a 15.7% m/m surge in August) due to a leap in natural gas prices by 18.4% m/m. Prices for transportation climbed another 0.5% m/m, being driven by increasing prices for fuel. On top of that, prices for education surged 11.0% m/m.
The abundant supply of domestic fruits and vegetables drove the food component of inflation downward in helping to eke out relatively low inflation in September. Meanwhile, a significant jump in prices for clothing and footwear was likely the result of a seasonal collection change for more expensive warm outerwear, as well as 1.6% monthly hryvnia depreciation that resulted in price
19​ UKRAINE Country Report​ November 2020 ​ ​www.intellinews.com