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At the same time, the decline in metallurgy slowed to 3.3% y/y compared with 7.6% y/y the previous month, and chemical production grew 1.9% y/y compared with 5.8% y/y growth in September.
Mining output declined 2.5% y/y compared with a 2.8% y/y slide in September. In particular, iron ore production decreased 1.5% y/y, coal production fell 11.8% y/y and oil & gas production dropped 2.0% y/y. The supply of electricity & natural gas slid 1.8% y/y after a 0.2% y/y decline in September.
Regionally, the steepest declines were observed in the Ternopil (-20.2% y/y), Chernivtsi (-17.7% y/y) and Sumy (-13.3% y/y) regions. Industrial output grew the most in the Ukraine-controlled Luhansk (20.3% y/y), Mykolayiv and Kherson (both 12.1% y/y) regions.
“We expect industrial output to drop around 6% y/y in 2020 compared to a 0.5% y/y decline in 2019,” an analyst at the Kyiv-based Concorde Capital brokerage said in a research note.
4.2​ Inflation
4.2.1​ CPI dynamics
16​ UKRAINE Country Report​ January 2021 ​ ​www.intellinews.com
After being crushed in 2019 and 2020 inflation is back. Inflation fell to a low of 1.7% y/y in the middle of 2020 but it had risen above 3% in November and is expected to end the year at 4.9% in 2020 before rising to 7.3% in 2021. The NBU has slashed rates, but will be forced to start tightening in 2021 to control price growth.
Ukraine’s consumer inflation sped up 3.8% y/y in November ​from 2.6% y/y in the prior month, the State Statistics Service reported on December 9.