Sharp inflation decline in November, stronger rate cut looming

UKRAINE - In Brief 09 Dec 2019 by Dmytro Boyarchuk
November CPI sharply slowed down to +0.1% m/m (+5.1% y/y) from + 0.7% m/m (+6.5% y/y) in the prior month. The result beat any expectations. Food prices’ deflation (-0.2% m/m) coupled with sliding prices for clothing and footwear (-1.4% m/m) amid strengthening hryvnia is behind the result. By November CPI was only 4.3% ytd (+8.9% ytd a year ago) meaning it will end up close to 5% (much below targeted 6.3%) even if inflation speeds up in December. But what’s more probable scenario, CPI will fall in the range of 4-5% by the end of the year. Sharp CPI slowdown coupled with good news from the IMF opens the way for stronger prime rate cut on December 11th. Market players talk about at least a 150 basic points’ cut.

Now read on...

Register to sample a report

Register
Sign-in
Forgot your password?
Copyright 2024 GlobalSource Partners. All rights reserved. This is prepared for GlobalSource Partners’ clients and may not be redistributed, reproduced, stored in a retrieval system, retransmitted or disclosed, in whole or in part, or in any form or manner, without the express written consent of GlobalSource Partners. This is distributed simultaneously to our website and other portals used by GlobalSource Partners. The information herein was obtained from various sources and is believed to be reliable but GlobalSource Partners does not warrant its completeness or accuracy. Neither GlobalSource Partners nor any Country Analyst, officer or employee accepts any liability whatsoever for any direct, indirect or consequential damages or losses rising from any use of this or its contents.