You're reading: Underlying inflation in Ukraine in October 2012 slows to 1.1%, says statistics service

Underlying inflation in Ukraine in October 2012 compared to October 2011 slowed to 1.1%, down from 1.6% in September 2012 and 2.3% in August 2012, the State Statistics Service has reported. 

Underlying inflation in October 2012 remained unchanged at 0.1%, and the macroeconomic indicator in January-October 2012 stood at 0.6%.

Underlying inflation in October 2011 was 0.6%, and in annual terms it amounted to 7.8%.

Underlying inflation does not include short-term irregular changes in prices influenced by various factors of an administrative, event-based or seasonal character. For instance, it does not include changes in the price of food and energy.

The State Statistics Service started calculating underlying inflation at the beginning of 2008. Underlying inflation in 2009 was 14.9%, while consumer prices grew by 12.3%. Underlying inflation in 2010 was 7.9%, while the growth of consumer prices stood at 9.1%. In 2011 it grew to 6.9% and 4.6% respectively.

The International Monetary Fund anticipates that underlying inflation in Ukraine in 2012 will slow to 5.3%, while as a whole consumer price growth will accelerate to 7.4%.

Inflation in October 2012 was 0% both per month and in annual terms. According to the State Statistics Service, consumer prices in Ukraine have dropped by 0.3% since the beginning of the year. The government expected inflation in 2012 to speed up to 7.9%, and this forecast was used to draft the national budget for the current year.