Dec. 6 (Bloomberg) -- Ukraine’s inflation rate declined to 9.2 percent in November from 10.1 percent in the previous month as growth of food and utility costs slowed.
The median estimate of 13 economists surveyed by Bloomberg was for a rate of 10.2 percent. On the month, prices rose 0.3 percent, the statistics committee in Kiev said today in a statement on its website.
The government expected monthly consumer-price growth of 0.2 percent to 0.5 percent “meaning that the annual inflation dynamics are slowing,” Alexander Valchyshen, head of research at Investment Capital Ukraine, said before the release. “Inflation may stay under 10 percent this year.”
The rate dropped to 6.8 percent in July, the lowest in 6 1/2 years, before jumping to 10.5 percent in September after a summer drought boosted food prices. The International Monetary Fund said on Nov. 16 that core inflation is expected to continue slowing.
The decrease in food prices, namely fruits and vegetables, “is short term,” said Olena Bilan, chief economist at Kiev-based Dragon Capital investment bank. There was no massive increase in utility rates in November, said Bilan. Dragon Capital also expects inflation under 10 percent this year.
Producer prices, an early indicator of inflation, rose an annual 18.9 percent in November, after 19.8 a month earlier. Factory gate prices fell 0.3 percent from October.
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