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Inflation accelerated in Ukraine: the National Bank named the reasons for the rise in prices

Published Dec 5, 2024

Tridge summary

Consumer inflation in October surpassed the National Bank of Ukraine's forecast, accelerating to 9.7% annually due to factors such as adverse weather conditions' impact on agricultural crops, faster fuel price increases, and increased core inflation driven by higher costs of processed food and business expenses. Food inflation rose, particularly in vegetables and fruits, due to hot weather, while non-food product prices and services also saw price growth. Fuel price growth slowed down in October, but alcohol and tobacco products, as well as pharmaceutical products, medical goods, and equipment became more expensive. Additionally, cheese producers in Ukraine plan to increase cheese prices by 10% from December 1, while retail chains are resisting, and tomato prices have increased due to a decrease in the supply of local tomatoes.
Disclaimer: The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In October, consumer inflation accelerated (up to 9.7% in annual terms) and exceeded the trajectory of the NBU forecast. According to the regulator, price growth continued in November. This is stated in the Macroeconomic and Monetary Review of the NBU. "Yes, food inflation increased as a result of the more significant than expected impact of adverse weather conditions on agricultural crops. Administrative inflation and fuel prices also increased somewhat faster than expected," the document said. Core inflationary pressure also increased in October. It is noted that core inflation increased due to the rapid increase in the price of processed food products under the influence of higher raw material costs, further growth in business expenses for electricity and labor, as well as the effects of carryover of devaluation in previous periods on prices. As for food prices, the NBU noted that in October, food inflation accelerated rapidly due to the effects of hot weather without rain in ...
Source: Unian
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