In Ukraine, annual inflation slowed in May, although commodity trading prices in the consumer market continued to rise, their dynamics slowed down (to 1.5-2%), the press-office of the MEDT reports.
This happened due to:
1) rate stability in the foreign exchange market;
2) in April, hike in gas and electricity tariffs for population, regulated by the government;
3) less anxiety among the population, happened in February and March.
Some regions showed an increase in rates for hot water supply and heating, and sewerage, by 7.4%; 7.0% and 6.2%, respectively.
At the same time, in May, there was a decline in consumer prices for some food products:
bread - by 0.1% (due to the pricing policy the manufacturers of bakery products);
fish and fish products - by 0.4% (due to the hryvnia rate stability);
milk - by 0.9% (due to increase in supply);
sugar - by 6.7% (by reducing the excess demand).
As the consumer demand remains weak, in the future it will not lead to inflationary overhang. Expenditures that are increasing (devaluation, tariffs) have already caused the price rise. Yet, overseas markets are not reportedly affecting the prices.
Therefore, it is expected that damping down inflation tendency will continue.
