Daily Insight-FY2010 inflation and Ferrexpo production report for December 2010

Ukraine\'s consumer price index (CPI) reached 0.9% MoM in December, after 0.3% in November and 0.5% in October. Nevertheless, 12M10 inflation stayed in single-digit territory, at 9.1%, which is a rare occasion for Ukraine. Therefore, 2010 compares well with 2009, when inflation reached 12.3%. In fact, this is the first time since 2003 that Ukraine\'s inflation entered single-digit territory; 2010 results therefore make it more realistic that inflation will go further down, to 8.9% in 2011, as set in the government\'s state budget law.