In March, price growth rates were lower than forecasted by the National Bank. YoY consumer inflation slowed to 21.3% from 24.9% in February. This is stated in the NBU commentary on inflation..

In general, as noted by the NBU, the rapid decline in inflation is associated with a significant supply of food and fuel, a better situation in the energy sector, improved inflation expectations and a favorable situation in the cash segment of the foreign exchange market..

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Rising prices for processed food products slowed down significantly (to 23.5% y/y). As in February, this is largely due to a better-than-expected energy situation. Thus, prices for bread and flour products, confectionery, soft drinks and canned food grew at a slower pace.. With sufficient supply in the domestic market and lower export prices, the cost of dairy products and sunflower oil grew more slowly.

Growth in prices for non-food products also slowed down significantly (18.8% y/y). Such dynamics was expected, firstly, due to the effects of the base of comparison last year. Secondly, due to the improvement in exchange rate and inflation expectations, prices for personal care products, clothing and footwear, electronics, pharmaceuticals, furniture, household appliances, cars grew more slowly..

The rate of growth in the cost of services remained almost unchanged (15.4% y/y). Travel services, catering and hotel services, as well as rent rose more slowly. "

The cost of medical, insurance, veterinary, telecommunications and beauty services grew faster - influenced by increased costs and less supply against the backdrop of a gradual recovery in demand. Also, given the continued high demand, the rise in prices for services of electricians and plumbers has accelerated..

Raw food price growth slowed to 31.6% y/y.

Milk prices rose more slowly due to ample supply amid weak demand and declining global prices. Flour, cereals and sugar rose in price at a slower rate, taking into account last year's harvests sufficient to meet domestic demand. Meat price growth slowed down, given the effects of lower feed prices and weak demand.

The decline in import prices and the favorable situation in the foreign exchange market led to a slowdown in the appreciation of citrus fruits and bananas.

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At the same time, greenhouse vegetables and carrots rose in price at a higher rate, while the rate of fall in prices for cabbage slowed down.. This is primarily due to the exhaustion of the temporary effects of warm weather during the winter months..

Significantly reduced the rate of rise in fuel prices - up to 27.9% r / s. This is due to the presence of significant reserves and the decline in world oil prices..