Ukraine’s inflation rate falls to lowest since 2013

Business in Ukraine -- Ukraine’s inflation rate falls to lowest since 2013

In 2018, the official Ukraine’s inflation rate dropped below the 10% mark for the first time since 2013, official figures show. In 2019, the government is even more optimistic and targets an inflation rate of around 7.4%.

In 2018, the official Ukraine’s inflation rate dropped to 9.8%, below the 10% mark for the first time since 2013, official figures show.

In particular, the price of food and non-alcoholic beverages rose by 7.8%, when compared with 2017 (by 1.8% month-on-month). Statistics authorities said prices of vegetables and bread rose the most, by 27.8% and 21.5% respectively. Notable year-on-year price increases were also recorded for noodles (14.7%), baked goods (14.1%), as well as fish and fish products (11.2%). At the same time, fruit prices dropped by 17.0%, egg prices by 9.5% and sugar prices by 9.3%.

Moreover, tax increases caused alcohol and tobacco prices to rise. These were 17.9% higher year-on-year. Footwear and apparel prices remained relatively stable last year with a small increase of 2.0%, and even dropped by 2.5% month-on-month. According to the Ukrainian Statistics Agency, housing prices rose by 10.7%, when compared to December 2017.

Year-on-year price increases were also recorded for restaurants and hotels (13%), education (13.4%), transportation (12.9%) and health care (8.9%). Communication costs and prices in the recreation and culture sectors also rose by 15.1% and 4.4% respectively, when compared with the previous year.

After 24.9% and 43.3% inflation rate in 2014 and 2015 respectively as a result of a war-related devaluation of the national currency Hryvnia, the official inflation rate in 2016 first dropped to 12.4% and rose again in 2017 to 13.7%.

In 2019, the government currently targets an inflation rate of around 7.4%. The Ukrainian National Bank is even more optimistic for the time being and expects an inflation rate of 6.3% with a further tendency to decline in the following years. The next energy price hikes are expected in May 2019 as the International Monetary Fund provides further loan tranches.

Be the first to comment

Leave a Reply

Your email address will not be published.


*