Ukraine sees acceleration of inflation in Jan

Consumer inflation in Ukraine in January 2021 compared to January 2020 was 6.1%, having accelerated from 5% in December 2020.

Inflation in the consumer market in January 2021 compared to December 2020 stood at 1.3%, the State Statistics Service of Ukraine reported on its website.

Read alsoUkrainian Agribusiness Club forecasts 7-8% inflation in spring

Consumer prices of food and soft drinks rose by 1.4%, it said.

Eggs went up in price most (by 15.4%). Prices of vegetables, sugar, sunflower oil, poultry, bread, beef, processed cereal products, and cheeses rose by 1.0-6.5%. At the same time, prices of pork fell by 1.3%.

Prices of alcoholic beverages and tobacco increased by 1.0%, which is associated with a rise in prices of tobacco by 1.9%.

Prices of clothes and footwear fell by 4%, in particular, those of footwear decreased by 4.0% and clothes declined by 3.9%.

The rise in rates (tariffs) on housing, water supply, power rates, as well as prices of gas and other fuels by 6.0% was mainly due to an increase in electricity tariffs by 36.6%, sewage by 17.3%, water supply by 10.9%. At the same time, prices of natural gas decreased by 4.5%.

Transportation tariffs climbed by 1.0% primarily due to a rise in prices of fuel and lubricants by 2.3% and prices of vehicles by 1.0%. However, train fares dropped by 1.4%.

Telecoms rates rose by 1.0% due to a 10.2% increase in rates on local telephone communications.

Previous developments

• Consumer inflation in Ukraine in December 2020 versus December 2019 was 5% against 4.1% in December 2019 versus December 2018.
• On December 18, 2020, Prime Minister Denys Shmyhal said that the Ukrainian economy was expected to grow by 4.6% amid moderate inflation in 2021.
• On January 21, 2021, a forecast was released according to which the National Bank of Ukraine predicts inflation will accelerate in the first half of 2021 with a return to a target range of 5%±1 p.p. in the first half of 2022.