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4.0 Real Economy 4.1 Industrial production
Ukraine’s industrial production fell 11.7% in May y/y, less than April’s record y/y drop of 16.2%. The State Statistics Service reports May’s biggest drop was coal extraction – down 44.5%. The only significant increase was pharmaceutical products – up 8.8%. From January to May, industrial production is down 8.7% compared to the first five months of 2019. Electricity generation dropped by 11.2%; manufacturing by 10%; and mining by 6.6%. Last year, industrial production decreased by 1.8% compared to 2018.
4.2 Inflation
Ukraine’s consumer inflation slowed to 1.7% y/y in May from 2.1% y/y in the prior month, the State Statistics Service reported on June 9. Consumer prices increased 0.3% m/m in May (vs. 0.8% m/m in April), mostly driven by food, alcohol and tobacco prices.
Food prices rose 1.2% m/m in May (after climbing 2.1% m/m in April). In particular, prices jumped for fruits (15.8% m/m), eggs (9.4% m/m), sugar (16.6% m/m) and bread (0.7% m/m). In addition, prices for alcohol and tobacco climbed 1.1% m/m. At the same time, prices for meat declined 1.6% m/m, while prices for sugar slid 0.8% m/m.
Meanwhile, prices for clothing and footwear declined 1.4% m/m (after
28 UKRAINE Country Report July 2020 www.intellinews.com
