The NBU explains why Ukraine’s price growth accelerated in the summer.

In July, consumer inflation in Ukraine accelerated to 5.4% annually compared to 4.8% in June. According to the NBU’s estimates, the tendency toward accelerated consumer inflation continued in August.

“The price pressure grew due to the increase in business costs for providing electricity, product storage, and labor wages, as well as the weakening of the hryvnia exchange rate in previous periods,” the National Bank explained.

At the same time, egg prices continued to fall despite the hot weather, and the secondary effects of weaker pressure on feed costs were reflected in lower prices for pork and chicken.

The price increase for most non-food products accelerated, primarily under the influence of the exchange rate factor. Services became more expensive under the pressure of business costs for labor and energy. Growth in prices for pharmaceutical and medical goods and equipment also accelerated, presumably due to the exchange rate factor. The price increase for tobacco products slowed but remained high, mainly due to measures to combat the shadow market.

Inflation continued to be restrained by a moratorium on tariff increases for housing and communal services.