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Ukraine’s 2019 industrial output declined 0.5% y/y, according to updated weights, compared to a ​1.8% y/y decline reported previously​. The difference is due to revisions to the structure of industrial output. In particular, the share of food production and metallurgy was revised higher, while the share of machinery and iron ore mining was revised lower, UkrStat reported.
The agency also revised retroactively the industrial output index for 2016-2018. Industrial output increased 4.0% y/y (vs. 2.8% y/y reported previously) in 2016, 1.1% y/y (vs. 0.4% y/y reported previously) in 2017 and 3.0% y/y in 2018 (vs. 1.6% y/y reported previously).
4.2​ Inflation 4.2.1​ CPI dynamics
Ukraine's consumer inflation stood at -0.3% month-on-month and 2.4% year-on-year in February, ​according to the nation's state statistical service Ukrstat.
Key categories contributing to the drop in the CPI relative to January were clothing and footwear (impact of -23 basic points bps), food (-18 bps), and utilities (-11 bps). Prices growth was recorded in healthcare, alcohol and tobacco, and a few smaller items (+21 bps in total).
The National Bank of Ukraine (NBU) cut its key policy rate by 2.5 percentage points (pp) to 11% per annum in late January. The NBU continues to ease its monetary policy with the aim of maintaining inflation at the target level of 5% and supporting steady economic growth.
In December, the NBU cut its key policy rate by two percentage points to 13.5% per annum from 15.5%.In 2019 consumer inflation declined to a six-year low of 4.1% (versus 9.8% in 2018). The NBU thus achieved its medium-term inflation target of 5% ± 1 pp (declared in 2015) earlier than expected.
19​ UKRAINE Country Report​ April 2018 ​ ​www.intellinews.com