Inflation Slows in Ukraine
The hryvnias has gained strength
Photo from Ukrinform-UATV
Ukraine’s inflation rate has slowed.
In February, consumer inflation slowed to 8.8 percent compared to 9.2 percent in January. Prices rose by half-a-percent according to data published by Ukraine’s State Statistics Service of Ukraine.
In February, core inflation – which is meant to better represent the long-run trend in price levels by excluding items frequently subject to volatile prices like food and energy – slowed to 7.8 percent compared to 8.3 percent in January, the press office of the National Bank of Ukraine said.
The inflation rate in February matched the forecast published in January’s Inflation Report. Core inflation slowed down faster than expected, due to the strength of the hryvnia. This offset temporary food price increases.
The growth in prices for non-food products slowed to 2.8 percent. The strength of the hryvnia affected the prices of imported goods and goods with a significant import component. The prices of home appliances, furniture, pharmaceuticals, clothing and footwear, and for computer equipment decreased compared to last year.
The growth rates of services for the maintenance of houses and adjoining areas, rental, catering establishments, outpatient, and insurance services slowed to 14.1 percent.
The growth rates for foods requiring a high degree of processing decreased to 9.2 percent. However, that slowdown was hampered due to higher prices for foreign market goods.