Page 19 - UKRRptJan22

In 11M21, industrial output increased 1.3% y/y (vs. a 5.4% y/y decline in 11M20).
Manufacturing output increased 1.8% y/y in November (after a 0.4% y/y increase in October). In particular, machinery production grew 6.7% y/y, metals output increased 4.1% y/y, pharmaceuticals surged 14.2% y/y, and chemicals picked up 8.5% y/y. At the same time, food output slid 0.7% y/y; coke production and oil processing declined 3.3% y/y.
Mining sector production advanced 0.9% y/y in November (vs. 0.6% y/y growth October). In particular, oil and gas processing advanced 0.4% y/y, while coal production dropped 0.7% y/y and iron ore output declined 1.9%.
The supply of electricity and natural gas declined 6.4% y/y (vs. 7.6% y/y growth in October).
Regionally, output increased in 14 out of 25 regions. It grew the most in Ivano-Frankivsk (17.7% y/y), Rivne (16.4% y/y) and Sumy (11.8% y/y) regions. The highest industrial declines in November were in Kirovohrad (-17.0% y/y), Kharkiv (-9.3% y/y) and Kyiv (-7.9% y/y) regions.
4.2 Inflation
Industrial inflation (PPI) in Ukraine is above 60% in November 2021. The highest figure since 1996, according to the State Statistics Service. Industrial inflation indicates an increase in the cost of raw materials and components that businesses use to produce or provide services. The most significant increase was in the following industries: Electricity, gas, and air conditioning supply - 174%, coke and refined products - 112%, Oil and gas production - 75%, Chemicals production - 69%. The increase in gas prices in 2021 will lead to the additional acceleration of consumer inflation next year by 0.8 percentage
19 UKRAINE Country Report January 2022 www.intellinews.com