Inflation in Ukraine reaches 23% in August - NBU

In August 2022, inflation in Ukraine accelerated to about 23% in annual terms, according to preliminary estimates of the National Bank of Ukraine (NBU).

"In July, inflation accelerated to 22.2% in annual terms. According to preliminary estimates of the National Bank, it reached about 23% in August. However, the overall price growth was more moderate compared to the NBU’s forecast," NBU Deputy Governor Serhiy Nikolaychuk said at a briefing, an Ukrinform correspondent reported.

According to Nikolaychuk, this is primarily due to a faster-than-expected decrease in the cost of fuel as a result of lower oil prices on world markets and the improvement of domestic logistics. At the same time, inflationary pressures remain strong, mostly due to the effects of the war, including the destruction of production facilities and disruption of logistics.

Fixing tariffs for housing and utility services will continue to play a significant role in curbing inflation. Despite the high global prices for energy carriers (gas, electricity), their cost for household consumers will remain unchanged throughout the current heating season, so the impact of this factor on inflationary dynamics will be limited.

As Ukrinform reported, according to the NBU estimates, in 2022, inflation in Ukraine will reach 31%, and GDP will decrease by a third. Next year, the economy is expected to return to growth and inflation is projected to get back on the downward trend.

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