OREANDA-NEWS. According the Raiffeisen Bank Aval press-service with reference to the State Statistics Committee, in September consumer price index grew for 2.2 percent in Ukraine comparing to the previous month, which is the highest monthly CPI growth rate since December 2004.

Dimitry Sologoub, Analyst of Raiffeisen Bank Aval, believes that the main reasons for inflation hike in September are sharp increase in prices for several food products, meat and diary products, sunflower oil and butter, caused by supply-side factors. Specifically, food production costs have jumped upwards due to poor harvest and rising prices for other inputs (PPI grew for almost 20 percent comparing to the same period of the last year).

Intensive food prices growth in Ukraine is in line with the international food markets', trend as adverse weather conditions have damaged the harvest all over the world thus driving food prices up.

The analyst of Raiffeisen Bank Aval projects that inflation in 2007 will definitely exceed 10 percent and most probably will end up around 12 percent, as prices for certain food products are likely to continue rising.