You're reading: Underlying deflation in Ukraine accelerates to 0.4 percent in July

Underlying deflation in Ukraine in July reached 0.4 percent compared to 0.1 percent a month ago, the State Statistics Service reported on Aug. 10.

Underlying inflation in July 2016 compared to July 2015 decreased to 7.9 percent from 8.3 percent in June and 8.8 percent in May, being the lowest since May 2014.

Since early 2016, underlying inflation has hit 2.6 percent, whereas it was 28.1 percent in the same period last year.

Last year the Statistics Service recorded underlying deflation only once – 0.1 percent in July.

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 to prices of food and energy.

Underlying inflation in Ukraine in 2015 accelerated to 34.7 percent after 22.8 percent in 2014 and 0.1 percent in 2013.

Growth in consumer prices in Ukraine last year amounted to 43.3 percent compared to 24.9 percent in 2014 and 0.5 percent in 2013. In January and March 2016, inflation stood at 0.9 percent and 1 percent respectively, in February a 0.4 percent deflation was fixed.

The government of Ukraine forecast a GDP growth by around 1 percent with inflation being about 12 percent in 2016.