Deflation in Ukraine in October 2015 was 1.3% compared to September 2015 / Photo from UNIAN
Ukraine's Economic Development and Trade Ministry has revised downwards its forecast for inflation in 2015, to 43% from 44.8%, due to sudden deflation recorded at 1.3% in October 2015.
The ministry claimed the major factor that had caused the deflation was the two-tiered system of gas prices for households during the heating season.
The ministry's analysts forecast that a further decline in inflation will be enhanced by falling prices of raw materials on global markets, the current strict monetary policy, which includes forex limitations and the surplus of the national budget. Better inflationary expectations and new bank deposits in the national currency will also be conductive to an improvement in the situation.
As UNIAN reported, deflation in Ukraine in October 2015 was 1.3% compared to September 2015.
Consumer prices in Ukraine resumed their decline in October after growth (inflation) by 2.3% in September.
The ministry earlier predicted inflation at 44.8% in 2015. Its forecast for 2016 stands at 17.2%.