Ukraine’s consumer inflation stayed at a 2.4% year-on-year level in July, the State Statistics Service reported on August 10.
Consumer prices dropped 0.6% month on month in July (vs. a 0.2% m/m increase in June), mostly driven by price declines for food, clothing and footwear.
Food prices dropped 1.4% m/m in July (after climbing 0.4% m/m in June). In particular, prices declined for eggs (-15.1% m/m), vegetables (-15.0% m/m), sugar (-1.1% m/m) and milk (-0.7% m/m). At the same time, prices for fruits climbed 1.1% m/m, and for bread they inched up 0.3% m/m. Prices for clothing and footwear continued to decline, losing 4.8% m/m in July (after falling 2.8% m/m in June).
Prices for housing and utilities jumped 1.4% m/m (vs. a 0.4% m/m decline in June), mostly due to an increase in natural gas prices by 7.5% m/m. Prices for transportation climbed another 1.2% m/m in July after the same monthly growth in the prior month, being driven by increasing prices for fuel and lubricants and growing prices for rail transportation.
“The monthly decline of consumer prices in July was likely the result of both supply and demand factors. A significant seasonal decline of prices for certain food items amid increased supply is typical during summer months. At the same time, the continuing decline of prices for clothing and footwear even amid a 2.2% m/m depreciation of the national currency implies that consumer demand for non-essential goods remains depressed,” Evgeniya Akhtyrko of Concorde Capital said in a note.