Page 29 - UKRRptFeb19

4.2.1 CPI dynamics
Ukraine’s inflation fell to 9.8% in 2018 , an almost one third drop from the 13.7% recorded in 2017, reports the State Statistics Service. Prices increased the most for: road passenger transport +30%; vegetables +28%; maintenance of houses +24%; natural gas +23%; and bread +21%. The biggest declines were for: fruits -17%; eggs - 9.5%; and sugar -9%.
Inflation will fall this year to 6.9%, from 9.8% last year, Yakiv Smoliy, governor of the National Bank of Ukraine predicted Thursday in a speech to the Rada. According to a recent Reuters survey of 15 analysts, the median inflation forecast for 2019 is 7.5%.
The monetary policy committee of the National Bank of Ukraine (NBU) at a meeting on December 12 unanimously noted the weakening of inflation risks and availability of signs of improvement of inflation expectations. According to the minutes of the meeting posted on the website of the central bank's website, a record hitting grain and oilseed harvest, the quick decline in global energy prices, the moderate fiscal policy of the government, the improvement of external environment for developing countries and the favorable situation on the currency market contributed to the reduction of inflation risks.
29 UKRAINE Country Report February 2019 www.intellinews.com