Industrial inflation is gaining momentum in Ukraine.

In July, the industrial product manufacturer’s price index (an indicator of the average level of changes in wholesale prices for raw materials, materials, and intermediate consumption goods) amounted to 8.8%. This is primarily due to a 16.9% increase in prices for electricity, gas, steam, and air conditioning.

In annual terms, the index’s growth accelerated to 33.3%, compared to last month’s 26.7%. Chairman of the Finance Committee Danylo Hetmantsev noted that the acceleration of inflation continues to have a noticeable energy component, primarily due to losses in generating capacities, the import of more expensive electricity, and rising costs for alternative energy supply sources. Prices for producers increased the most on an annual basis in the following industries:

• Supply of electricity, gas, and steam (+60.6%)
• Production of coke and petroleum products (+22%)
• Production of pharmaceutical products (+21.6%)
• Extraction of crude oil and gas (+17%)
• Production of food products (+14%)

In the energy sector, the year-on-year producer price index reached 66.6%, the extractive industry 10.1%, and the processing industry 9.6%