KIEV, July 8 - Ukraine had 0.3% deflation in June compared with May, the State Statistics Committee said.

Prices fell 1.2% compared with June 2011.

They rose 0.1% in the first half of 2012.

As reported, inflation in 2011 slowed to 4.6% from 9.1% in 2010, hitting a record low since the country gained independence in 1991. The previous best record was posted for 2011 at 6.1%, while 0.6% deflation was posted for 2002.

The government expected inflation this year to speed up to 7.9%. The state budget for 2012 was built based on this inflation forecast. According to the statistics service, inflation is slowing down and changed to deflation in May. In particular, inflation was 0.2% per month in January and February, 0.3% in March, and 0% in April. As reported, inflation in Ukraine in annual terms, i.e. compared to the same month last year, slowed to 0.6% from 1.9% in March and 3% in February. In May deflation of 0.5% year-over-year was seen.