The NBU Comments on the June 2017 Inflation Figures
As expected, headline inflation accelerated to 15.6% yoy in June 2017 (up from 13.5% in May). In monthly terms, the CPI increased by 1.6%, according to data released by the State Statistics Service of Ukraine (SSU).
- Core inflation accelerated to 6.8% yoy in June (stood at 0.2% mom).
- As expected, raw food prices accelerated further (to 23.6% yoy and 7.2% mom). However, the pace of increase outperformed the NBU’s projections. Prices for fruit and vegetables accelerated to 40.7% yoy and 29.0% yoy, respectively.
- Growth of administered prices and tariffs accelerated to 28.8% yoy (stood at 1.3% mom), primarily reflecting higher tariffs for cold water and sewerage effective from May.
- As expected, fuel prices decelerated to 11.5% yoy (were down by 1.0% mom) against the backdrop of past decreases in global oil prices and favorable FX market conditions.