Prime Minister Yulia Tymoshenko is forecasting deflation in July. She stated this on Tuesday, July 22 during her opening remarks at the meeting of the Cabinet’s Council of Investors.

Tymoshenko noted that in the first 20 days of July, almost all oblasts, with the exception of two, have recorded deflation, reports Obkom referencing Ukrayinski novyny.

Among the causes of significant inflation in early 2008, Tymoshenko named: general global trends on financial and food markets, increase in energy prices, legalization of imports on the Ukrainian border.

“Once we started putting the true customs value, this influenced the price,” she noted.

The Premier underscored that thanks to the government’s effort, inflationary processes have been stopped, and the future outlook on inflation is optimistic.