Ukraine sees 7.5% inflation Feb 2021

Consumer inflation in Ukraine in February 2021 was 7.5% year-on-year against 6.1% in January 2021.

Inflation in February 2021 compared to January 2021 was 1%, the State Statistics Service of Ukraine said on its website.

Read alsoNBU updates inflation forecast

In February, prices of food and non-alcoholic beverages rose 2.1%. Prices of sunflower oil, vegetables, sugar grew most (by 5.5-7.6%). Prices of poultry meat, fruits, bread, beef, processed grain products, fish and fish products, pasta, sour cream, and butter increased by 1.3-3.8%. At the same time, prices of eggs, dairy products and pork fell by 0.1-0.2%.

Prices of alcoholic beverages and tobacco increased by 1.3%, in particular, those of alcoholic beverages grew by 1.4% and tobacco by 1.3%.

Rates (tariffs) on housing, the supply of water, electricity, natural gas and other fuels declined by 1.8% was mainly due to a 6.6% drop in prices of natural gas.

Transportation rates increased by 1.6% primarily due to a rise in prices of fuel and lubricants by 7.3%. Rail fares grew by 1.9%. However, cars fell in price by 1%.

Inflation and NBU forecasts

• On August 3, 2020, the National Bank of Ukraine (NBU) raised its inflation forecast in Ukraine in 2020 to 6% from 4.8% predicted earlier, while keeping the target range within 5% +/-1 pp.
• According to the State Statistics Service, consumer inflation in Ukraine in July 2020 compared to July 2019 was 2.4% - the level registered in June this year.
• The National Bank of Ukraine predicted that inflation would enter the target range set at 5% +/-1 pp by the end of the year due to the gradual recovery of the global economy and a rise in energy prices.
• Consumer inflation in Ukraine in September 2020 compared to September 2019 was 2.3%, having slowed from 2.5% in August 2020.
• Consumer inflation in Ukraine in October 2020 compared to October 2019 was 2.4%, having accelerated from 2.3% in September 2020.
• The Ministry for Development of Economy, Trade and Agriculture predicted an increase in inflation in Ukraine from the beginning of 2021.
• Consumer inflation in Ukraine in January 2021 compared to January 2020 was 6.1%, having accelerated from 5% in December 2020.
• On March 4, 2021, the National Bank published a forecast for further growth of inflation in Ukraine. It predicts peaks in the middle of this year, but projects a slowdown by the end of 2021.