OREANDA-NEWS. December 10, 2007. Inflation in Ukraine continues gaining momentum. According to the State Statistics Committee of Ukraine (Goscomstat), the consumer prices growth in November amounted to 2.2%, and for 11 months of the year the inflation reached 14.2% thus almost replicating the aggravated governmental forecast for 2007 – 14.5%, UFC-Capital reports. Taking into account that starting from September the inflation each month adds 2%, by the end of the year it will obviously exceed 16%. This figure must “make happy” the officials from the Cabinet headed by Victor Yanukovich, which a month ago claimed that in 2007 the inflation would not exceed 7.5%. Nevertheless, in November, the Cabinet after the record-breaking rise of consumer prices was forced to revise the macroeconomic outlook for 2007-2008 by increasing the inflation forecast for this year to 14.5% and in 2008 – to 9.6%.

This year inflation is the highest one since 2000, when it amounted to 25.8%. In 2001, they managed to suppress it to 6.1%; in 2002, for the first time in the history of this country a deflation of 0.6% was recorded, while in the following three years the inflation amounted to 8.2%, 12.3% an 10.3%, accordingly.

While the record price increase in October (2.9%) to a considerable extent was facilitated by food products appreciation, in November, it was mainly caused by light oil products (the conflict at Ukrtatnafta CJSC led to decrease in oil volumes processing and light oil products deficit in the country) prices increment as well as of utilities and transport cost.

While in October, according to the Goscomstat, the food products inflation reached 4%, in November it amounted only to 2.3%. Instead, the acceleration of prices for transport – from 0.3% to 1.8%, fuel – from 3% to 9%, and utilities – from 2.4% to 3.8% was observed. A significant contribution to the consumer prices increase was also made by increment in social benefits pay-out – since October 1, the minimum salaries and wages grew from UAH 440 to UAH 460, the minimum pension – from UAH 410 to UAH 415. In view of the fact the monthly advance of consumer prices in autumn exceeded 2%, it is possible to state that in 2007 the inflation in Ukraine will exceed 16%, which will make a new Cabinet revise the macroeconomic indices for 2008.