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13:47
STATISTICS: UKRAINE SEES 0.1% DEFLATION IN JULY

Kyiv, August 6 (Interfax-Ukraine) – Consumer prices in Ukraine in July 2009 dropped by 0.1% compared to a 1.1% increase registered in June, 0.5% registered in May, 0.9% in April, 1.4% in March, 1.5% in February, and 2.9% in January, the State Statistics Committee has reported.

Consumer prices have increased by 8.5% since the start of the year, reads the report.

The deflation was the first registered in Ukraine since August 2008, when it was also 0.1%. In July 2008 consumer prices fell more considerably – by 0.5%.

As the committee said, prices of foodstuffs and soft drinks declined by 0.2% in July. The steepest decline in prices (by 6.6%) was seen on the vegetable market. In particular, the price of potatoes fell by 16.7%, that of onions by 16.3%, and cabbage by 9%.

Rice, animal fats, cheese, milk and dairy products, meat and sausages, and creamery butter went down in price by 0.8-2.9%. However, the price of eggs increased by 16.1%, that of sugar by 7.2%, fruit by 1.3%, and sunflower oil by 0.7%.

Alcoholic beverages rose in price by 1.7%, and tobacco by 7.1%.

The committee said that the decline in housing and utilities rates (gas, electricity, water, etc.) by 3.3% is connected with the decision taken by the Cabinet of Ministers to suspend decisions by Kyiv City Administration on an increase in housing and utilities rates.

Tariffs in the health care sector increased by 0.6%, which is connected with a seasonal rise in health care and spa treatment services by 3.2%, reads the report.

Transportation fares grew by 1.1% in general. The committee explains this by an increase in the prices of fuel and lubricants by 4.7%.

However, the prices of computers, audio and video equipment, washing machines, ovens, and telephones decreased by 0.1-0.7%.

As reported, a Ukrainian authorities' memorandum, approved as part of the country's cooperation with the International Monetary Fund, foresees that inflation in 2009 is to slow to 16% from 22.3% in 2008. However, cabinet's official inflation forecast is set at 9.5%.

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