MBS Blog

Dec. 3 (Bloomberg) — Ukraine’s inflation rate probably fell in November for a fourth month as the economic recession cut household incomes, a survey of economists showed.

The rate fell to 13.7 percent from 14.1 percent in October, according to the median estimate of eight economists in a Bloomberg survey. On the month, prices probably rose 1.2 percent after gaining 0.9 percent in October. The state statistics committee will release the report tomorrow or on Dec. 7.

“Domestic demand remains weak, suppressing price growth, while administratively regulated prices such as utility tariffs are to be raised only moderately ahead of January presidential elections, ” said Olena Bilan, an analyst at Kiev-based largest investment bank Dragon Capital.

Average real wages fell 10.4 percent in the first 10 months after rising 8 percent in the same period a year ago, the committee said on Nov. 25. The economy shrank 15.9 percent in the third quarter, 17.8 percent in the second and a record 20.3 percent in the first three months of the year after the global financial crisis cut demand for exports such as steel.

“We expect inflation to slow further in December because of weak demand,” said Bilan. “We see inflation at 13 percent in December.”

The International Monetary Fund, which last November approved a $16.4 billion two-year loan for Ukraine, expects the inflation rate to be 14 percent this year and 9 percent in 2010.

The government based its 2010 state budget on an inflation rate of 9.7 percent. It has failed to keep inflation below 10 percent since 2003.

The untimely death of MBS Ltd. partner Joel Bucher has been a trauma for all that knew and worked with him. Joel was a cornerstone of MBS Ltd. and BOZONGO. He was both an inspiration and a guiding force, and he will be missed.

MBS. Ltd. will go forward and grow. We are fortunate that Joel helped the company get to the point where it had the ability to continue with a clear vision and a solid foundation. Over the next several months we will expand into new markets and evolve the dream that Joel helped realize.