The growth of consumer prices in Ukraine in annual terms in August 2021 remained at the level of 10.2%, the State Statistics Service reported.
According to its data, after inflation of 0.1% in July, deflation of 0.2% was recorded in August this year, which corresponds to the dynamics of prices in August last year.
Underlying inflation in August was zero after deflation of 0.1% a month earlier. In August last year, an underlying inflation of 0.1% was recorded, respectively, in annual terms, it decreased to 7.2%.
In the consumer market in August, prices for food and non-alcoholic beverages decreased by 0.7%. Vegetables and fruits fell in price the most – by 18.3% and 5%, respectively. Prices for sunflower oil, pasta, rice and cheese fell by 1.0-0.2%. At the same time, prices for eggs increased by 18%, prices for sugar, meat and meat products, milk, sour cream, bread, butter, fermented milk products, fish and fish products rose by 3.6-0.3%.
Prices for alcoholic beverages and tobacco products increased by 0.4%, which is associated with a rise in prices for tobacco products by 1.0%.
Prices for clothes and footwear fell by 3%, in particular for footwear – by 3.7%, clothing – by 2.5%.
The rise in tariffs for housing, water, electricity, gas and other fuels by 0.6% was mainly due to an increase in prices for maintenance and repair of housing by 2.3%, natural gas – by 2.1%, sewage – by 0.9%, water supply – by 0.7%.
Transport prices increased by 0.8%, primarily due to the rise in the cost of transport services by 1.9%, fuel and oils – by 1.6%.
As reported, in June consumer prices in Ukraine increased by 0.2%, in May – by 1.3%.
In general, for the first eight months of this year, inflation in Ukraine amounted to 6.2%, underlying inflation – 4.2%.
The National Bank of Ukraine in July downgraded the inflation forecast for 2021 from 8% (in the April forecast) to 9.6%. According to it, by the end of the third quarter, inflation will peak this year at 11.2%, after which it will begin to decline.
Finance Minister Serhiy Marchenko sees the potential to keep inflation within 10%.
“There are hopes that it will be possible to keep inflation within 10%, not exceeding 10%,” he said during the Ukrainian Financial Forum, organized by ICU.
According to the State Statistics Service, inflation in July 2021 in Ukraine increased to 10.2% in annual terms, while in June this figure was at the level of 9.5%. At the same time, the NBU expects that by the end of the third quarter, inflation will peak this year at 11.2%.
Commenting on deteriorating expectations of a number of investment banks regarding the growth of the Ukrainian economy, the minister noted that these forecasts are based on GDP growth in the second quarter compared to the same period last year.
“It is still difficult to estimate the end of the year, because main capital investments and expenditures are planned for the third or fourth quarter,” Marchenko said.
According to him, the situation will improve, as evidenced by the constant growth of retail turnover, as well as the growth potential of the construction industry.
“By the end of the year, we expect a stable situation both in public finances and in the economy, without sharp shocks. I think that we will have 4% of GDP growth this year,” Marchenko said.
FINANCE MINISTER, INFLATION, SERHIY MARCHENKO, UKRAINE'S INFLATION
The growth of consumer prices in Ukraine at the end of June 2021 decreased to 0.2% from 1.3% at the end of May. In annual terms, inflation remained at 9.5%.
The State Statistics Service said on Friday, that core inflation in June was 0.4%, while in May it was at 0.7%.
In general, for the first six months of 2021, inflation in Ukraine amounted to 6.4%, core inflation to 4.3%.
