Inflation in Ukraine has started to slow, but it is eroding more than 50% of salary growth.

Inflation peaked in May 2025 and began to decline in June, according to the NBU’s Macroeconomic and Monetary Review. In May, consumer inflation accelerated to 15.9% annually due to a larger-than-expected increase in raw food prices. However, in June overall inflation slowed as a result of a decrease in administrative inflation. The NBU reports that annual inflation fell below 15% in June.

The regulator expects inflation to continue weakening in the second half of 2025, assuming the energy supply remains stable and no new shocks hit the food market. Business and consumer inflation expectations “have worsened somewhat,” but they are still notably lower than the actual rate of price growth.

The national bank also noted that the ongoing labor shortage continues to support high growth in nominal Ukrainian wages, over 20% in 2025. However, due to rising inflationary pressure, the growth of real wages has slowed, with real wages increasing by 9.2% year-on-year in the first quarter.