Deflation in June in the first place was due to lower food prices, deputy director general of the National Bank's economic department, Oleksandr Petryk said in a video commentary posted on the website of the National Bank of Ukraine.

"In June, inflation rate fell by 0.3%, and in annualized terms the decline made 1.2%, which was the lowest indicator in the history of statistical surveys in Ukraine," he said.

According to Petryk, "those were precisely the prices of food to have determined the downgrade trend in the general inflation index."

In addition, lower inflation expectations, as well as lower prices for industrial goods in the world markets, also inhibit the consumer price growth dynamics.

According to the State Statistics Service of Ukraine, deflation has been reported in Ukraine for the second consecutive month. The index of inflation from the beginning of the year is only 0.1%, despite the fact that the government expected annual inflation of around 5%.

Ukrinform