Page 22 - UKRRptNov19

4.2.1 CPI dynamics
Ukraine’s consumer prices jumped 0.8% m/m in September owing to growing prices for food, clothing, and footwear and education, the State Statistics Service reported on October 9. Annual inflation slowed to 7.5% y/y in September from 8.8% y/y in August.
Food prices increased 0.3% m/m in September (vs. a 0.3% m/m decline in August), driven mostly by bread (1.1% m/m), fruits (2.4% m/m) and milk (1.7% m/m). At the same time, prices for eggs declined 6.3% m/m, vegetables fell 5.1% m/m, and sugar slid 1.0% m/m.
Prices for clothing and footwear surged 8.7% m/m (after a 2.8% m/m decline in August). In addition, prices for education jumped 9.9% m/m.
At the same time, prices for utilities and house maintenance dropped 0.2% m/m (vs. a 0.9% m/m decline in August) driven by lower natural gas prices for households (-3.0% m/m). In addition, transportation prices slid 0.4% (vs. a 0.6% m/m decline in August) due to falling prices for gasoline and railroad transit.
Core inflation (the consumer basket excluding goods and services with the most volatile prices) jumped 1.2% m/m in September (vs. a 0.1% m/m decline in August). Annual core inflation slowed to 6.5% y/y from 7.2% y/y in August.
Food prices started growing in autumn due to tighter supply. The jump of prices for clothing and footwear is connected to the seasonal change of retailers’ stocks for more expensive warm items.
22 UKRAINE Country Report November 2019 www.intellinews.com