A good harvest this year has led to deflation in food prices in July and August. Inflation reduced to 8.9% year-over-year, which is 2% lower the current maximum rate in June. The major driver of future inflation development by the end of the year will be the introduction of customs fees in the amount of EUR 182 per 1 ton of petrol from September 1, which since April this year have been temporarily reduced to EUR 132, say Ukrainian analysts.

The government postponed the visit of an IMF mission and left the price of gas unchanged. Rising prices was a requirement of the IMF and had to be 5% to an increase in the Consumer Price Index. The government decided to re-negotiate a gas contract with Russia, which could be delayed, given the contradictions of the parties to avoid a significant increase in gas prices in the domestic market.

UKRINFORM