In Ukraine, food prices are rapidly rising. Actual consumer inflation accelerated to 7.5% year-on-year in August. The National Bank of Ukraine notes in its Macroeconomic and Monetary review that one of the main reasons for the increase in consumer inflation was the acceleration of food inflation.
All of this is due to the resurgence of raw material prices, which was caused by a supply reduction due to drought. Prices of processed products increased faster due to the rising cost of raw materials, energy supply expenses, and salaries.
Meanwhile, in September, inflation increased year-on-year to 8%.
Furthermore, most non-food items became more expensive due to exchange rate influences. However, prices for clothing and footwear declined faster, likely due to increased competition between imported and domestic products. The pace of service price growth accelerated as a result of increased production costs for businesses.
At the same time, the increase in fuel prices slowed down in August, taking into account fuel reserves and lower than expected oil prices.
Alcohol prices decreased slowly, and the rise in tobacco product prices slowed, although costs increased, particularly due to efforts against the black market.
Moreover, the price growth of pharmaceuticals, medical goods, and equipment accelerated, likely due to the exchange rate.
05 October 2024 г., 19:20
