Inflation in May has slowed down due to the strengthening of the hryvnia.
In May, inflation slowed to 0.1% mom and 7.5% yoy, due to the strengthening of the hryvnia and weak consumer demand. This was announced by the National Bank of Ukraine.
The dynamics of prices in May, according to the NBU, also led to a general trend towards weakening inflationary pressures, as well as the adjustment of administratively regulated prices and tariffs.
“Evidence of a general trend to ease inflationary pressure was a decrease in core inflation to 0.2% on a monthly basis and by 8.8% year on year, which is slightly faster than expected. The slowdown in core inflation, as before, determined the strengthening of the hryvnia, and as weak consumer demand and the effects of the decline in prices for some raw foodstuffs”, – informs NBU.
In particular, vegetables fell in May by 5.8% due to seasonal factors. Also, milk, and sugar prices declined during this period. At the same time more expensive meat and meat products, eggs.
Regulated prices fell 0.5% in May. “On the one hand, on May 1, the price of gas for the population was reduced by 4.3% in the other hand, last month grew tobacco products and alcoholic beverages, due to the delayed effect of raising excise taxes in the first quarter.” – Says NBU .
In connection with the increase in world oil prices fuel in the domestic market went up by 5.8% in May.
National Bank stresses that the dynamics of inflation in May, confirming the accuracy of the prediction of the dynamics of consumer prices in 2016 (12% plus or minus 3 percentage points).
As reported earlier, inflation was 0.1% in May, and since the beginning of the year (January-May), consumer prices rose by 5.2%.
At the end of 2015, inflation was 43.3%.
