The Ministry of Economy names four critical price growth factors in Ukraine.

In August, consumer prices increased by 0.6% for the month. On an annualized basis (August 2024 compared to August 2023), inflation accelerated to 7.5% from 5.4% a month earlier, according to the Monitoring of Major Economic Events in Ukraine by the Ministry of Economy.

The ministry explained this trend as the coincidence of several powerful inflationary factors:

1. high pressure on producer prices stemming from a significant increase in the price of electricity, as well as expenses to purchase or operate alternative sources of electricity
2. lack of an agricultural product surplus on the market, mostly owing to difficult weather conditions
3. significant personnel shortages
4. Extreme danger and uncertainty regarding the further course of hostilities

The Ministry of Economy noted that the moratorium on tariff increases for some utility services and the NBU’s monetary policy slowed inflation down. This contributed to price stabilization, especially in the non-food segment of the market, where certain price decreases were even observed.