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Inflation in Ukraine grew to 2.4% in December 2004 to annual 12.3%

January 13, 2005 | Cbonds

Inflation rate in Ukraine picked up from 1.6% in November to 2.4% in December. On the annual basis it increased from 8.2% in 2003 to 12.3% in 2004, as reported by the National Statistics Committee.

Inflation rate in 2004 has almost doubled against the initial government forecast of 6.3%, having reached the record high in the recent years after consumer prices jumped by 25.8% in 2000. In 2001 inflation decreased to 6.1% and in 2002 the country posted a 0.6% deflation.

The inflation surge of 2004 was triggered by crude and metal appreciation on global markets which hit domestic prices. Another factor lies in shortages of meat and its price growth after decline in cattle stock in the lean year of 2003. Large social payments made by the government in September-November during the presidential election campaign – in which head of the Cabinet Victor Yanukovich participated as a candidate – also played thier part.

Ukrainian authorities hope to slow the inflation down to 8.7% in 2005.

Based on Reuters data


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