Consumer inflation accelerated in Ukraine

The main factor of the situation is the growth of production costs, additionally – the effects of adjusting the exchange rate of the Hryvnia.

In Ukraine, consumer inflation accelerated from 23.8% in August to 24.4% in September in annual terms. This was stated in the National Bank’s Macroeconomic and Monetary Review, published on October 5.

“The main factors behind the increase in inflationary pressure are the consequences of military actions and the occupation of Russia, as well as the pass-through effects from the correction of the Hryvnia exchange rate,” the regulator stressed.

It was noted that the acceleration of inflation was caused by the July correction of the official Hryvnia exchange rate, limited supply of new consignments of goods, significant business logistics costs, depletion of stocks and worsening devaluation expectations.

Screenshot: bank.gov.ua

“Prices of individual food products also rose faster on the back of rising production and supply costs (mostly processed foods), limited supply (meat products), rising import costs (rice, citrus fruits, bananas),” the review said.

Inflation was contained by expanding the supply of domestic cereals and fuel. Thanks to cheaper oil and normalization of logistics, fuel price growth has continued to slow. Tariffs for housing and communal services have remained almost unchanged from year to year.

“At the same time, the prices for alcoholic beverages grew faster, mainly due to the increase in production costs for energy, raw materials and packaging, and the increase in the price of tobacco products accelerated, ” added the NBU.

Remember, according to the forecasts of the European Bank for Reconstruction and Development, this year the Ukrainian economy will decrease by almost a third.

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