The National Bank of Ukraine has outlined the reasons for rising inflation in the country.

In February 2025, both general and core inflation continued to rise in Ukraine. According to the NBU, inflation maintained its upward trend in March. The primary factors driving inflation’s acceleration in February to 13.4% on an annual basis were rising prices of raw and processed food products due to last year’s poor harvests and high production costs for businesses.

Core inflation also increased, reaching 12% year-on-year, primarily due to further rises in business expenses, particularly salaries and energy resources, along with sustained strong consumer demand.

Industrial inflation also accelerated in February. The rise in industrial production prices by 37% year-on-year was driven mainly by significant price increases in the “supply of electricity, gas, and steam” (65.1% annually). This is likely to lead to further increases in consumer prices through secondary effects.