NBU Comments on the March 2017 inflation Figures
In March 2017, consumer inflation accelerated to 15.1% yoy (from 14.2% yoy in February). In monthly terms, consumer price rose by 1.8%. According to data released the State Statistics Service of Ukraine.
Inflation of raw food products accelerated due to increased production costs, active exports and a low comparison base.
Core inflation slowed in March to 6.3% yoy (in the monthly measurement was 1.7%). This was due to the strengthening of the hryvnia exchange rate in February-March 2017. Due to such trends in the foreign exchange market, the prices of imported goods grew less significantly.
At the same time, the growth of prices for food products with a high degree of processing was expected to accelerate. This is due to the secondary effects of a rise in price of raw products, including milk and meat.
Prices for some services continued to grow. In March, the cost of services for restaurants and hotels, hairdressing salons, notaries, taxis, public services increased, and tariffs for telecommunications services increased. Such trends are associated with increased costs, in particular labor costs.
Rise in prices for raw food products accelerated to 7.5% yoy in March (for the month prices increased by 1.0% m / m).
The growth of prices and tariffs regulated administratively, accelerated to 39.5% yoy (for the month was 3.2% m / m).
Fuel prices in March did not change, due to which their growth slowed to 26.4% yoy.
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