Inflation in Ukraine slowed to 4% in Q1, March figure 0.5% - State Statistics Service

MOSCOW. April 9 (Interfax) - Inflation in Ukraine quickened to 0.5% in March from 0.3% in February and 0.4% in January, Ukrainian media reported, citing the State Statistics Service.

Inflation was 1.5% in March 2023, so in annual terms it fell to 3.2% in March this year from 4.3% in February and 4.7% in January.

Core inflation quickened to 1.0% in March from 0.4% in each of February and January.

Inflation was 4.0% in January-March (prices had risen 4.5% in annual terms in January-February this year). Food prices went up 2.1% and transport services 6.1%.

Food and non-alcoholic beverages fell 0.2% in price in March, the biggest drops being for eggs, by 16.4% compared with February and 34.3% compared with March last year, for sunflower oil (1.5% and 17.4%) and sugar (2.5% and 13.3%). Fruit prices increased (by 4.1% and 4.9%).

Clothing and footwear rose in price by 12.9% compared to the previous month, but decreased in annual terms by 6.7%. Transport prices rose 1.7%, mainly due to an increase in the price of rail passenger transport by 4.4% and fuel and oils by 2.7%. In the communications sector, prices rose 0.5%, which is due to a 15.7% increase in local telephone charges.

Inflation slowed to 5.1% in 2023 from 26.6% in 2022 and 10% in 2021.

The National Bank of Ukraine said in January that it expected 8.6% inflation for 2024 compared with its previous forecast of 9.5%. It said inflation might be 5% in Q1, rising to 6.6% in Q2 and 8.8% in Q3.

The government in November improved its 2024 inflation forecast from 10.8% to 9.7%.