The National Bank explained why prices fell in October.
The regulator noted that inflation has continued to slow down, primarily due to further growth in the food supply and the preservation of stability in the foreign exchange market. Thus, in October consumer inflation in annual terms slowed to 5.3% from 7.1% in September. In monthly terms, prices increased by 0.8%.
“The price of fruits and vegetables continued to decline due to a good harvest because of favorable weather conditions and the increase in production volumes in several regions,” the NBU noted.
In October, fuel prices rose against rising global oil prices and logistical difficulties. Price increases for processed food continued to slow, dropping to 8.5%. Growth in prices for non-food products, including electronics, household appliances, clothing, and footwear, also slowed to 1.7%.
The growth rate in the cost of services decreased once again, to 11.7%. However, the cost for rental housing, as well as the cost of housing repair services, increased under pressure from a shortage of qualified personnel.