Consumer price growth to accelerate moderately in Ukraine in coming months - NBU

The National Bank of Ukraine (NBU) predicts that consumer price growth will moderately accelerate in the coming months as the effects of last year’s higher harvests and this year’s warm weather wear off and businesses’ labor costs rise.

According to Ukrinform, this was reported by the central bank’s press service.

“In April, the decrease in annual inflation stopped, and underlying inflationary pressures expectedly edged higher. The NBU projects that inflation will accelerate moderately in the coming months as the effects of last year’s higher harvests and this year’s warm weather wear off, businesses’ labor costs rise, and the administrative component of inflation increases,” the report says.

The NBU emphasizes that at the same time, inflation will be restrained by a decline in external price pressure and monetary policy measures, including those aimed at maintaining a controlled situation in the foreign exchange market and protecting household savings from inflationary depreciation. Monetary policy measures will continue to aim to keep inflation moderate this year and bring it to its target range of 5% ± 1 pp in coming years.

As reported, in April 2024, consumer inflation in annual terms (yoy) remained at the level of the previous month at 3.2%. Month-on-month, prices grew by 0.2%.