Prices in Ukraine increased by 16%: what went up the most and when to expect inflation to slow down
26 June 2025 20:13
According to the State Statistics Service of Ukraine and the National Bank of Ukraine, inflation reached 15.9% year-on-year in May 2025. This is the highest rate in the last two years. The main factors behind the rise in prices were higher food prices, higher utility tariffs, and higher costs of services, "Komersant Ukrainian" reports.
Food prices continue to rise: 22% over the year
The food segment is showing the highest growth: prices for food and soft drinks increased by 22.1% over the year.
The most noticeable price increases were:
- eggs – by 86%;
- vegetables – by 35.7%;
- sunflower oil – by 35.4%;
- fruits – by 33.5%;
- butter – by 28.5%;
- bread – by 22-23% on average.
According to the NBU, raw foods made the biggest contribution to inflation, with prices rising by more than 26% year-on-year. The main reason for this was unfavorable weather conditions that affected the harvest and higher logistics costs.
Utility tariffs: 20%
Utilities also became more expensive by an average of 20.1%. The biggest increase was in the price of electricity: 63.6% over the year. Tariffs for water, gas, heat, and building maintenance also continued to rise, albeit less dynamically.
What has fallen in price: clothing and footwear -5%
The only category that showed a decline in prices was clothing and footwear, with prices falling by 4.8-5%. The reasons are weak consumer demand, seasonal sales, and oversaturation of the market with leftovers from previous collections. At the same time, the impact of this category on the overall inflation rate remains insignificant.
Services and fuel: stable growth
The cost of communication services, transportation, restaurants, beauty salons, and other services increased by 14-18%.Alcohol and tobacco products went up by 18.3%.Fuel prices remained almost unchanged, up only 1.2% over the year.Prices for non-food items, except clothing, increased by 3.8%.
What the NBU says
The NBU acknowledges that inflation peaked in May and predicts a gradual slowdown in the second half of the year.
The main factors that should contribute to stabilization are:
- seasonal decline in prices for fruits and vegetables;
- moderate growth in energy tariffs;
- tight monetary policy.
According to the NBU’s current forecast, annual inflation may fall to 8-9% by the end of 2025. Core inflation (excluding food prices, energy prices, and administratively regulated tariffs) is expected to reach single digits in December.
Comparison with other countries
The average inflation rate in the OECD countries as of April 2025 was 4.2%, which is almost four times lower than the Ukrainian rate. This gap is due to the war, instability in the energy sector, limited imports, and high logistics costs.
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