Inflation in Ukraine accelerates amid rising oil and fuel prices.
Inflation in Ukraine increased by 7.9% over the past year, including 1.7% in March. The main reasons were the rise in fuel prices and global oil price increases due to the Middle East conflict.
According to the National Bank of Ukraine, fuel prices rose by 23.4% over the year, affecting the cost of transportation services, which increased by 8.6%. Although the rate of tariff growth has slowed, it still exceeded forecasts. This is related to the increase in fares for urban and intercity transport following rising fuel costs.
Prices for fresh products also experienced changes, but their growth slowed to 8.4%. Pork and chicken became more expensive at a slower rate due to imports, while borscht set significantly decreased in price thanks to sales of stocks. Buckwheat, on the contrary, became more expensive due to a poor harvest.
Core inflation in Ukraine increased to 7.1%. Oil became more expensive due to a sunflower shortage, while fish prices rose due to expensive imports from the EU. Confectionery and beverages became more expensive at a slower rate, thanks to stable sugar prices.
Communication, household, and entertainment services experienced a price increase of 12.8%, which was associated with increased energy costs for businesses. At the same time, non-food products became the only category where prices decreased by 0.5% over the year.
Analysts note that the conflict in the Middle East may continue to impact global oil prices, which in turn will continue to pressure Ukraine’s economy. This could lead to further price increases for essential goods and services.
| Category | Yearly Price Change |
|---|---|
| Fuel | +23.4% |
| Transport Services | +8.6% |
| Fresh Products | +8.4% |
| Core Inflation | +7.1% |
| Communication and Services | +12.8% |
| Non-food Products | -0.5% |
