Page 22 - UKRRptOct18

annual inflation slowed to 8.9% in July from 9.9% in June and 13.7% at the end of 2017, the State Statistics Committee reported on Thursday. The central bank unexpectedly raised its main interest rate to 17.5% from 17% in June, warning that a number of factors could pose a threat to inflation decreasing to the target level.
4.2.1 CPI dynamics
Ukraine’s consumer prices remained flat m/m in August as annual inflation slightly accelerated to 9.0% y/y growth (from 8.9% y/y in July), the State Statistics Service reported on August 10. Cooling prices for food and clothing were offset by growing prices for transportation and utilities.
Food prices declined 0.6% m/m (after a 1.9% m/m decrease in July), mostly due to a seasonal drop in prices for fruits (-6.2% m/m) and vegetables (-10.5% m/m). At the same time, prices for eggs jumped 6.0% m/m after plunging during the previous months. Clothing and footwear prices slid 2.6% m/m (after a 4.6% m/m drop in July).
Other consumer prices grew, led by transportation, which added 1.5% m/m in August (after 0.7% m/m growth in July). Prices for alcohol and tobacco increased 0.9% m/m (after 1.9% m/m growth in July). Housing and utility prices climbed 0.5% m/m, while prices for household durables inched up 0.3%. Core inflation (the consumer basket excluding goods and services with the most volatile prices) inched up 0.1% m/m in August, after sliding 0.1 m/m in July. Annual core inflation slowed to 8.7% y/y growth from 8.8% y/y in the previous month.
4.3 Fixed investment
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Investments in fixed capital,
chg yoy 1.6% -50.5% 3.9% 7.1% 0.9% -6.7% -23.0% -9.3% 6.0% 12.0%
Industrial output, chg yoy -5.2% -21.9% 11.2% 8.0% -0.7% -4.3% -10.1% -13.0% 2.1% -0.1%
22 UKRAINE Country Report October 2018 www.intellinews.com