Price increases accelerated in August: The NBU explains why.

According to the National Bank, in August consumer inflation accelerated to 7.5% in annual terms (from 5.4% in July), as was expected. At the same time, core inflation increased more significantly than forecast due to the transfer of higher business costs for raw materials, energy, and labor costs to prices. These factors supported price pressure and the effects of the weakening hryvnia exchange rate in previous months.

Analysts emphasize that in August food inflation accelerated sharply due to the resumption of price growth for raw products against the background of a reduction in the supply of food products stemming from adverse weather conditions. The prices of processed food products also rose faster.

At the same time, the price of most non-food products also rose, primarily under the influence of the exchange rate factor. On the other hand, the prices of clothes and shoes decreased, probably due to increased competition between imported and Ukrainian-made products. Fuel price growth slowed in August due to ample inventories and lower-than-expected oil prices on global markets.