Daily Insight-Core CPI in August; Landkom news; VTB loan repayment discussed

Core inflation accelerated in Ukraine in August, with its index rising to 0.8% MoM for the month, from 0.5% in July, bringing the YoY core inflation index up to 8.8% in August, up from 8.6% in July. August\'s core inflation was also higher compared with the same periods of 2010, when it stood at the 0.6% MoM and 7.3% YoY level. The growth of the core inflation index, despite tighter monetary conditions, is likely linked with the increases in the alcohol beverage prices in August: the government, from August 3, set the minimum sale prices for locally produced alcohol beverages in order to fight the sales of counterfeited alcohol. The new regulation caused an obligatory increase of 25-50% in the minimum prices at which different kinds of alcoholic beverages are sold in the local retail networks. The official breakdown of CPI statistics showed the price index for the \"Beverages\" group rising 3% MoM in August, which was one of the highest levels among all product groups, and we consider the growing prices for alcohol beverages as the main factor for such growth.