Underlying inflation in Ukraine in 2012 slowed to 0.8%, down from 6.9% in 2011, the State Statistics Service has reported.

Underlying inflation in December 2012 remained unchanged at 0.1%.

Underlying inflation does not include short-term irregular changes in prices influenced by various factors of an administrative, event-based or seasonal character. For instance, it does not include changes in the price of food and energy.

The State Statistics Service started calculating underlying inflation at the beginning of 2008. Underlying inflation in 2009 was 14.9%, while consumer prices grew by 12.3%. Underlying inflation in 2010 was 7.9%, while the growth of consumer prices stood at 9.1%. In 2011 it grew to 6.9% and 4.6% respectively.

In December 2012, the State Statistics Service registered a rise in consumer prices by 0.25, while in 2012 deflation came to 0.2%.

The government expected inflation in 2012 to speed up to 7.9%, and this forecast was used to draft the national budget for the current year. The government foresaw 4.8% inflation in the national budget for 2013.