Consumer Price Index (CPI) in February, based on recent statements by Prime Minister Mykola Azarov, will be approximately 0.9% month to month, only slightly below the January figure (1.0%). Thus, annual inflation is expected to slow down to 7.2% from 8.3% last month, due to the high base of comparison. This opinion was expressed by Olena Belan, chief economist with the Dragon Capital investment company.

However, it is unclear to what extent higher tariffs for heat have affected the announced rate of inflation. These tariffs have been increased in some cities.

"We confirm our forecast for CPI in the short term and we expect that annual inflation will remain single-digit in the coming months, due to the high base of comparison, but will accelerate to 10.5% year on year by the end of 2011. Our forecast for the year takes into account the required by IMF 50% increase in gas tariffs for households, as well as a similar rise in prices for heat and electricity. If the tariff increase would not be so significant, it is quite possible that the index of consumer prices this year will be measured in single digits," the analyst said.

As UKRINFORM reported, Prime Minister Mykola Azarov said that inflation in Ukraine during the first two decades of February was about 0.6%.

According to the State Statistics Service, consumer price index in January 2011 compared to the previous month stood at 1%, compared to January 2010 - 8.2%.

Government's forecast for annual inflation is 8.9%.

UKRINFORM