Ukraine sees 3rd consecutive month of deflation

Ukraine records a 0.3% deflation in August compared with July , while the decline in consumer prices in a month-over-month ratio is recorded for the third consecutive month, as reported on the website of the State Statistics Service of Ukraine.

Inflation in August 2016 accelerated to 8.4% year-over-year after 7.9% in the previous month.

In January-August, consumer prices in Ukraine rose by 4.5%.

The data show that the biggest rise in August compared with the previous month was recorded for sewerage services - by 10.3%, water supply - by 8.7%, and alcoholic beverages and tobacco products - by 2.4%.

In annual terms, it is hot water and heating which rose the most - by 77.2%, as well as electricity - by 56.4%, and water supply - by 27.9%.

Read alsoNBU strengthens official exchange rate to UAH 26.72 to dollarThe greatest decline in prices in August against July was recorded for vegetables – by 10.6%, fruits - by 5.1%, and footwear – by 4.5%.

In annual terms, the price went down the most for eggs - by 12.7%, vegetables - by 12.4%, and natural gas - by 4.3%.

The State Statistics Service noted that the data are net of the occupied Crimea and Sevastopol, as well as part of the zone of the Anti-Terrorist Operation.

As UNIAN reported earlier, Deflation of 0.1% was recorded in July as compared to June, after a decline of 0.2% in June as compared to May.

in annual terms, inflation in July 2016 accelerated to 7.9% year-over-year (y-o-y).

January through July, consumer prices in Ukraine increased by 4.8.

The National Bank of Ukraine predicts a slowdown in headline inflation in Ukraine to 12% by the end of 2016. The International Monetary Fund forecasts inflation at 15.1%, and the World Bank – at 15%.

According to the expert consensus forecast compiled by UNIAN, inflation this year will slow down to 19%. Ukraine’s Budget for 2016 assumes an annual inflation rate of 12% and the hryvnia exchange rate at about UAH 24.1 to the dollar.