Ukraine saw deflation in 2012 for the first time in 10 years, with consumer prices going down 0.2% throughout the year.

But consumer prices grew 0.2% in December compared to November, the State Statistics Service said.

The prices of food and non-alcoholic beverages on the consumer market in December compared to November 2012 increased by 0.1%. The largest rise in prices of vegetables and eggs was observed (by 4.7% and 3.7%, respectively).

The prices of milk, sour cream, margarine, cheese, bread and sour milk products grew by 1.2-0.5%.

Meanwhile, the price of sugar dropped significantly, by 4.6%.

The prices of rice, fruit, grain, and fish declined by 1.2-0.7%, while the prices of meat, sunflower oil, and macaroni were down by 0.3-0.1%.

The price of tobacco goods and spirits rose by 0.7% - in particular the prices of spirits increased by 0.9%, and the prices of tobacco products were up by 0.5%.

In December 2012 tariffs for housing, water, electricity, gas and other fuel increased by 0.2% compared to November 2012.

The transport price index in general was 100% in December 2012. The cost of passenger transportation by railway and road went up by 0.5% and 0.2% respectively, while prices for air transportation dropped by 0.8%, and fuel and oil by 0.2%.

In December 2012 the prices of travel services, telephone equipment, audio, photo appliances, information processing equipment, and household appliances declined by 1-0.2%.

As reported, inflation in Ukraine in 2011 slowed to 4.6% from 9.1% a year ago and reached a record low indicator since the announcement of independence in 1991. Previously the best result was 6.1% in 2001. In addition, in 2002 a deflation of 0.6% was recorded.

Monthly deflation of 0.2-0.3% was recorded in the country from May. In September inflation of 0.1% was observed.

The government expected inflation in 2012 to accelerate to 7.9% and has not changed the forecast on which the 2012 national budget is based. (om/ez)