In August 2024, consumer inflation in Ukraine accelerated to 7.5% in annual terms. The main reason for this increase was the increase in food inflation, in particular due to the reduction in the supply of agricultural products caused by the drought. About this informs The National Bank of Ukraine (NBU) in its monetary review for October 2024.
In addition, the significant increase in the price of non-food products was caused by exchange rate factors.
“Core inflation increased to 6.5% y/y from 5.7% y/y in July. Such dynamics were ahead of the trajectory of the NBU’s July forecast primarily as a result of the rapid increase in prices for processed food products due to the secondary effects of rising prices of raw materials and rising production costs.”, – the NBU noted.
Fuel price growth, on the other hand, slowed due to ample inventories and lower than expected oil prices on global markets. However, the prices of tobacco products continued to rise due to the fight against the shadow market of products. The price increase of pharmaceutical products and medical goods also accelerated, which is probably related to exchange rate fluctuations.
The National Bank of Ukraine indicates that the cancellation of the official exchange rate of the hryvnia to the dollar, which took place last year, caused a gradual appreciation of the dollar by 13% due to a complex of economic factors.
