Inflation in 2011 could exceed 10% if the share of consumer goods in the index basket is not reduced. This opinion was expressed by the investment group Sokrat.

Inflation in 2011 could reach 10-10.5% if the notional amount is not changed, as more than 53.5% of it consists of food, and 11.0% of utilities tariffs.

However, experts concede that if the share of consumer goods in the index basket is reduced, then the level of 9-9.5% can be achieved.

"In June or July the inflation rate is expected to reduce amid falling prices for fruit, vegetables, dairy products, but further increase in utility rates could offset this decline, which will bring inflation to the expected level of 10.5% in 2011," Sokrat noted.

According to the State Statistics Service, the consumer price index in May was 0.8%. Since the beginning of the year prices have risen by 5.5%.

As reported, the Government of Ukraine intends to keep the growth in inflation in 2011 at 9.4%.

UkrAgroConsult