The actual growth of consumer prices in Ukraine in February 2019, which was registered at 8.8% year-over-year (y-o-y), stays within the forecast of the National Bank of Ukraine (NBU) published in the January 2019 inflation update.
"February 2019 saw a slowdown in consumer price inflation, to 8.8% y-o-y from 9.2% in January. In monthly terms, prices grew by 0.5%. This is according to data published by the State Statistics Service of Ukraine," the NBU said in the February 2019 Inflation Update, posted on its website. "In February, actual inflation was practically in line with the forecast trajectory published in the January 2019 Inflation Report."
Core inflation decelerated faster than expected: to 7.8% y-o-y in February, from 8.3% in January, as the hryvnia strengthened considerably. "This offset the faster growth in food prices, which was mainly due to temporary factors," the NBU said.
The prices of nonfood products grew slower (2.8% y-o-y), primarily due to the strengthening of the hryvnia, which impacted the prices of imported goods or goods, the cost of which largely depends on imports. Specifically, prices for home appliances, furniture, pharmaceuticals, clothing, and footwear grew at a slower pace. Prices for computer equipment even declined compared to the previous year.
The rate of growth in the prices of services also slowed, to 14.1% y-o-y. In particular, prices grew slower for housing maintenance, housing rental, foodservice, outpatient medical services, and insurance services.
The annual growth in the prices of highly processed foods also slowed slightly, to 9.2% y-o-y. However, this slowdown was restrained by a rise in the prices of cheese and cultured milk products, including due to an increase in the global prices of these products, and the continued decline in cattle livestock and related production.
As UNIAN reported, the State Statistics Service said that inflation in Ukraine in February 2019 was 8.8% y-o-y, slowing down from 9.2% a month earlier. Ukraine's national budget for 2019 is based on a macroeconomic forecast with a 3% increase in real GDP amid 7.4% inflation.
The National Bank of Ukraine predicts a slowdown in inflation to 6.3% in 2019, the International Monetary Fund and the World Bank project 7.3% inflation.
Experts polled by UNIAN forecast the growth of consumer prices will slow to 7.2%.