OREANDA-NEWS. August 9, 2010. Consumer prices went up 6.8% y-o-y in July vs. +6.9% y-o-y in June.

Concorde Capital: the marginal slowdown happened on the back of decelerating price increases for food products and fuel. Utility prices, in turn, saw the fastest acceleration as local authorities, notably in Kyiv, increased retail utility tariffs (+30%-40% in Kyiv) in July. The government’s 50% increase in gas tariffs for households starting in August and expected heating tariff increases in the fall will cause consumer inflation to accelerate in the coming months. On top of that, current world grain prices, surging on the back of deteriorating weather conditions, could also push up prices for bread and related products (one of the largest consumer basket items, 8.4% share) to go up in 2H10. We keep our 2010 inflation forecast at 10%, noting mounting upward risk.