Inflation in Ukraine has accelerated significantly, while production and consumption have fallen
Kyiv, April 28 (Navigator, Vladimir Mikhailov) – In the first quarter of 2014, the Ukrainian economy experienced a serious crisis. This is evidenced by statistical data announced by experts from the International Center for Advanced Studies at a press conference in Kyiv.
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In the first quarter, consumer prices rose 3%. The annual inflation rate accelerated to 3,4% at the end of March. The International Center for Advanced Studies forecasts inflation at 15,4% at the end of the year.
The weakening of the hryvnia was the main factor in accelerating inflation in the first quarter. A 16,6% increase in fuel prices in January-March will lead to an increase in transport costs in subsequent months, which will have a significant contribution to price growth.
Additional factors for the growth of consumer prices after the first quarter will be the introduction of a 7% VAT on medicines (happened on April 1), an increase in gas prices, as well as heating tariffs for the population and an increase in excise taxes on tobacco and alcohol products.
Since the beginning of the year, producer prices have increased by 3%.
Manufacturer inflation will continue to be high due to rising prices for imported materials, equipment and fuel due to devaluation, as well as increased gas prices.
Industrial production index decreased by 5% y/y (January–February);
Wholesale trade turnover decreased by 2% y/y (for the first quarter);
In January-March, cargo turnover decreased by 3,1% y/y;
In January-March 2014, the volume of construction work decreased by 6,4% year-on-year. Of these:
The volume of construction of non-residential buildings fell by 13,7%.
The volume of construction of engineering structures fell by 6,2%.
The volume of housing construction increased by 6,1%.
Passenger turnover decreased by 3,8% y/y (in January-March);
Retail trade turnover increased by 7,7% y/y (in January-March).
Production volumes in the mining industry decreased by 1,3% y/y (in January-March), including in the processing industry - by 7,7% y/y, in the energy sector - by 2,1% y/y .
The highest rates of decline are in mechanical engineering (17,9%), metallurgy (10,7%) y/y, and chemical industry (5,3%).
Private consumption decreased by 10%, public consumption - by 3% y/y.
Gross fixed capital formation fell by 15%, exports will decline by 14,1%, and imports by 18%.
Inflation in Ukraine has accelerated significantly, while production and consumption have fallen.