Core inflation in Ukraine in November 2010 slowed to 0.7% compared to 0.9% in October and 1.5% in September. This was reported by the State Statistics Committee.

According to the report, since the beginning of the year, core inflation has reached 7.2%, still lagging behind consumer inflation, which after rising by 0.3% in November reached 8.2% in the first 11 months.

The Government of Ukraine in its memorandum to the International Monetary Fund in mid-July forecast that in 2010, core inflation will be one-digit, that is under 10%, while consumer prices will rise by 12% largely due to higher energy prices. In early November, Prime Minister Mykola Azarov predicted that inflation in 2010 will not exceed 10%.

In September, the Head of the National Bank of Ukraine Volodymyr Stelmakh said that the rate of core inflation is the main reference point for determining the discount rate, which is still kept at a level of 7.75%.

The State Statistics Committee started the calculation of core inflation in 2008. Last year, core inflation in Ukraine was 14.9%, while consumer prices rose by 12.3%.

UKRINFORM