Annual inflation in June slowed down to 12.8% – Hetmantsev
According to him, it reached the lowest level since the beginning of the war
Annual inflation in June slowed down to 12.8%, marking the lowest level since the onset of the war. For comparison, in Poland, it is 11.5%, and in Hungary – 20.1%.
This was reported by Danylo Hetmantsev, Chairman of the Committee on Finance, Taxation and Customs Policy of the Verkhovna Rada, citing data from the State Statistics Service.
The MP clarified that consumer prices in June had increased by 0.8% (compared to May 2023).
"The largest contribution to the monthly inflation growth came from the increase in tariffs for electricity for the population, which was estimated by the State Statistics Service at +69.7%," he noted. Hetmantsev added that the overall cost of housing and communal services in June had increased by 11.9%.
He pointed out that food and non-alcoholic beverages had risen in price by 0.1% over the month, with the largest increase in price for meat and meat products (+1.9%). At the same time, the MP clarified, half of the food items had become cheaper in June. The largest monthly decreases were recorded in the prices of eggs (-4.1%), sunflower oil (-2.4%), and vegetables (-2.2%).
"Among non-food items, clothing and footwear have become cheaper by 3% over the past month, household goods and appliances – by 0.4%," Hetmantsev reported.
According to his data, in the service sector, the main contribution to deflation was provided by price reduction for transport services during the first half of 2023. In June, transport prices fell by 0.8% due to a decrease in the cost of fuel and lubricants by 2%, which compensated for the increase in tariffs for passenger rail transport by 3.1%.
However, it was specified that the cost of other services (excluding leisure and culture) continued to grow, with the largest increase in the cost of restaurant and hotel services (by 1%).
The head of the committee noted that overall consumer inflation since the beginning of the year was 4.6% (compared to December 2022). He added that in the first 6 months of this year, the largest price increases had been for electricity (+69.7%) and vegetables (+52%), while the largest price decreases had been for eggs (-31.1%) and fuel (-16%).
"Annual inflation has been slowing for the sixth consecutive month at a pace faster than expected," Hetmantsev noted. He recalled that the latest NBU forecast predicted annual inflation at the end of the first half of the year at 14.5%.
In addition, according to him, due to the exhaustion of the effect of a higher comparison base of last year, as well as inflationary effects related to the return of pre-war taxes on fuel and the undermining of the Kakhovka HPP, the potential for further reduction of annual inflation from July will be exhausted. The MP stressed that in the second half of the year, inflation was expected to stabilize within the range of 13-14%.
"At the same time, the good news is that faster deflation will catalyze the expected decision by the NBU board to lower the interest rate at the next meeting on July 27," he added.
At the moment, the website of the State Statistics Service of Ukraine is not available for users.
Background. Earlier, Mind reported that the NBU predicted moderate economic growth and inflation slowdown.
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