In November 2024, the level of consumer inflation in Ukraine increased to 11.2% in annual terms. Thus, the forecasts presented in the October Inflation Report of the NBU were exceeded. About this it is said in the Macroeconomic and Monetary Review of the NBU for January 2025.
Core inflation in November reached 9.3% in annual terms. The growth occurred due to the increase in the price of processed food products, an increase in business costs for energy supply and labor costs, as well as due to the devaluation of the hryvnia.
Food products became more expensive due to reduced supply of certain crops and livestock products, which affected both raw and processed products. The increase in the cost of non-food items was associated with exchange rate fluctuations, which slowed down the decline in prices for clothing and footwear.
Prices for services, including education, communication, culture, recreation, restaurants and hotels, also rose due to higher production costs. Although global oil prices have been declining, domestic factors have kept fuel prices high.
Administratively regulated inflation accelerated due to the increase in the price of alcohol and tobacco products caused by the devaluation of the hryvnia and the increase in excise taxes in 2025. At the same time, a moratorium on tariff increases for housing and communal services temporarily restrained their increase in price.
Inflation in the manufacturing sector slowed to 24.1% year-on-year thanks to a reduction in the growth rates of electricity and gas prices. In the extractive industry, however, prices have started to rise again due to rising global demand, labor shortages and higher energy and logistics costs.
