Prices Have Increased and It's Not Over Yet: Consumer Inflation in Ukraine is Gaining Momentum

The National Bank of Ukraine forecasts a moderate slowdown in inflation in 2023, driven by a consistent economic policy supported by international partners and a slowdown in global inflation. At the same time, consumer inflation in Ukraine will continue to be high, the statement on the NBU’s website reads.

"In December 2022, the annual consumer inflation in was 26.6% and remained virtually unchanged compared to the price growth rates in November (26.5%) and October (26.6). In monthly terms, prices rose by 0.7%," the report reads.

The acceleration of inflation in 2022 is primarily due to the consequences of Russia's full-scale military aggression. The indirect consequences of the war, in particular, exchange rate effects and the deterioration in the expectations of the population and business during the year, also had an impact on prices.

In addition, prices in Ukraine were pressured by the global acceleration of inflation - last year, most countries updated multi-year inflation highs.

Despite the war and high global inflation, actual price growth in Ukraine remained under control, and inflationary pressures have stabilized in recent months.

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