Lowest Inflation Rate for Ukraine Since 2003
Kyiv, April 26, 2012. The National Bank of Ukraine reports the annual Consumer Price Index inflation deceleration in the country to reach 1.9 percent. This is the lowest index in the last nine years. It ensued from the lesser CPI growth of only 0.3 percent in March of 2012. These macroeconomic results were achieved through moderate monetary and fiscal policies, reads the statement by the NBU.
The Ukrainian national bank notes that during October 2011 – March 2012 monthly inflation rate showed some lowest numbers in the history of statistical monitoring. The seasonally adjusted CPI has remained negative for the seventh month in a row. Bloomberg informs that the slowing inflation allowed the NBU to cut its main interest rate on March 23 – this is the first time such positive measure could be introduced in the last two years.
Moreover, the core CPI continued to decrease and reached 5.3 percent. This positive tendency arises from the respective state policies that reduce the aggregate demand. In fact, consumer demand lessened with simultaneous increase of individual bank deposits. This also helps narrow the national market of cash.
Rich harvest Ukraine cropped in 2011 contributed to the 7.2 percent decrease of prices on raw foods. Growth rate of the processed foods prices leveled at 8.6 percent over the year.
Strengthening of the exchange rate of the national currency – hryvnia – became one of the contributing factors to inflation slowdown, reports the NBU.
Concluding, inflation rate in Ukraine in March 2012 equaled 5.3 percent. Incidentally, Inflation.eu reports that the neighboring Poland had the 3.82 inflation rate over the same period, while Turkey’s March inflation was 10.43. Inflation in some EU countries – e.g. Belgium, Italy, and the UK – also exceeded 3 percent this March.
Spain and Sweden were the European countries with some of the lowest inflation rates in March 2012. They showed the respective 1.9 and 1.51 percent. North American Canada and the USA demonstrated 1.93 and 2.65 percent inflation in March, while Japan stunned with the 0.3 percent inflation in February 2012.
Previously, Bloomberg drew public attention to the fact that in February 2012 inflation in Ukraine reached the record 3 percent, illustrating the positive tendency of the development of the Ukrainian economy.