Ukraine’s annual consumer inflation slows to 11.3% in July

KYIV (Reuters) – Ukraine’s annual consumer inflation slowed to 11.3% in July compared with the same month a year ago, the statistics service said on Wednesday.

It said in a statement that consumer prices fell by 0.6% in July compared with June mainly thanks to a seasonal drop in vegetable prices. It said vegetable prices fell by 18.2% in July.

Inflation has been slowing faster than expected so far in 2023. Inflation peaked last year when consumer prices in Ukraine shot up due to disrupted logistics and broken supply chains after Moscow launched its full-scale invasion in February 2022.

The government and the central bank had implemented tight monetary policy measures to tame inflation. Also, domestic consumer demand has shrunk as millions fled the war and stayed abroad until the end of hostilities.

The central bank expects inflation to continue to slow down later this year but at a more moderate pace. The government has reinstated fuel excise duties which were scrapped last year and also raised prices for electricity for household consumers.

The statistics committee said that fuel prices rose by 7.3% in July.

The central bank expects inflation at 10.6% this year.

(Reporting by Olena Harmash; Editing by Toby Chopra)