Inflation in Ukraine Expected to Slow Amid Rising Prices
The National Bank of Ukraine has reported further increases in prices for goods and services, particularly for food products and fuel. However, the regulator expects inflation to gradually slow down. This is noted in the Macroeconomic and Monetary Review of the NBU for April 2025.
This is reported by AgroReview
According to the data, in February, consumer inflation rose to 13.4% year-on-year. According to the NBU, inflation continued to rise in March, when annual inflation exceeded 14%.
Causes of Inflation Increase
Among the main reasons that led to the acceleration of inflation, the following can be highlighted:
- the rising cost of raw and processed food products due to poor harvests last year;
- increased business costs, particularly for wages and energy resources;
- support for high consumer demand.
Trends in the Goods and Services Market
According to the review, Ukraine is experiencing an acceleration in the growth of prices for raw products year-on-year, as well as an increase in the prices of processed products. Additionally, the cost of non-food goods and services has risen, including:
- healthcare services;
- transport services;
- communication;
- services in the field of recreation and culture.
In contrast, prices for personal care services, as well as insurance and financial services, have increased at a slower pace. Prices for clothing and footwear remain lower compared to last year, which is also noted in the NBU report.
In February, the rise in fuel prices accelerated due to high rates of increase in the cost of autogas. However, despite this, the surplus supply of gasoline, competition among gas station networks, and the optimization of logistics for imports have restrained the increase in fuel prices.
“The pressure from production costs has led to rising prices for pharmaceutical products, medical goods, and equipment.”
It is noted that the moratorium on raising tariffs for certain housing and communal services continues to restrain administrative inflation.