Ukraine had 1.4% deflation in Aug, 2.5% inflation in 8M - State Statistics Service

MOSCOW. Sept 8 (Interfax) - Consumer prices in Ukraine fell 1.4% in August after dropping 0.6% in July but rising 0.8% in June, Ukrainian media reported, citing the State Statistics Service.

There was 2.5% headline inflation for January-August 2023.

Annual inflation slowed to 8.6% in August from 11.3% in July and 12.8% in June.

Core inflation was zero in August as in July, following 0.1% deflation in June. It slowed to 10% in annual terms in August, from 12.3% in July and 13.7% in June. Core inflation was 3.2% for 8M 2023.

Food and non-alcoholic beverages fell 3.7% in price in August. Vegetables fell the most, by 37.2%, with drops of 0.1-4.2% for fruits, processed grain products, vegetable oils, cheeses and eggs. But prices rose 0.5-2% for sugar, salo, meat and meat products, bread, dairy products and soft drinks. Alcoholic beverages and tobacco went up 0.8%, as tobacco prices rose 1.8%.

Clothing and footwear went up 2.3%.

Prices for housing, water, electricity, gas and other fuels charges rose 0.3%, mainly due to an increase in prices for housing rental by 2.3%.

Transport fares grew 3% due to a 7.4% rise in the cost of fuels and lubricants.

The National Bank of Ukraine at the end of July improved its inflation outlook for the year, from 14.8% to 10.6%.

Ukraine had headline inflation of 26.6% in 2022 and 10% in 2021.