Underlying inflation in Ukraine in November speeds up to 1.6%

17:15

Underlying inflation in Ukraine in November 2008 accelerated to 1.6%, down from 1.3% in October and 1.5% in September, the State Statistics Committee reported.

According to the committee's estimates, since the beginning of the year, underlying inflation has hit 18.9%, whereas consumer prices in general have grown by 19.8%.

After an October break in the trend for underlying inflation to exceed the pace of all consumer price hikes, due to the seasonal slowdown of food price growth, it returned in November. Consumer prices in November rose by 1.5%.

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

The State Statistics Committee started calculating underlying inflation from the beginning of 2008.

This summer, the Ukrainian government changed its forecast for consumer price growth for 2008 from 9.6% to 15.9%. The new estimate for consumer price growth was based on expectations that it would decrease in July and August by 0.4% and 0.3%, respectively, and increase in the subsequent months: September - up 0.2%, October - 04%, November - 0.2% and December - 0.3%.

However, the overwhelming majority of experts said that the government forecast was below actual price growth.

Early in December 2008, the Economy Ministry revised the inflation forecast and raised it to 21%.