Inflation is slowing faster than the NBU expected.

In January 2023, consumer inflation in Ukraine decreased to 26% annually and continued slowing in February. As well, a chart from the Macroeconomic and Monetary Review of the National Bank of Ukraine shows that inflation has slowed to approximately 25%. It is noted that mild weather conditions and the de-occupation of portions of the Kherson region made it possible to free the supply of goods from the other areas of Ukraine. Also, a stable foreign exchange market situation was a significant factor in the slowdown of food inflation. At the same time, higher costs of businesses due to the electricity shortage continued to exert inflationary pressure. Because of this, as well as the depletion of long-term storage products, the prices of processed and non-food products continued to grow at high rates.