Inflation in Ukraine accelerated to 1.7% in March

Consumer price inflation in Ukraine accelerated to 1.7% in February 2026, up from 1% in February and 0.7% in January. This is according to a report by the State Statistics Service.

On a year-on-year basis, inflation rose to 7.9% in March (7.6% in January 2026).

Core inflation for the period compared to February was 1.5%, and compared to March 2025, it was 7.1%.

It should be noted that, according to the NBU’s February inflation report, inflation is expected to reach 7.5% by the end of 2026, and subsequently remain close to the 5% target, reaching it in 2028. The economy will grow by 1.8% this year, and recovery will accelerate to 3–4% annually in the coming years.

As a reminder, in March, the National Bank of Ukraine kept the key policy rate at 15%.

As noted, the future trajectory of inflation may be higher than forecast, particularly due to rising energy prices amid the war in the Middle East.

The consequences of Russian aggression remain the main challenge for inflation dynamics and economic development, but geopolitical risks have also significantly intensified over the past month. Given the European community’s growing involvement in Ukrainian issues, the likelihood of positive scenarios unfolding remains.

As reported by the GMK Center, Ukraine’s real gross domestic product (GDP) growth in 2025 slowed to 1.8% from 3.2% in 2024. This is evidenced by preliminary data from the State Statistics Service. Ukraine’s nominal GDP last year stood at 8.93 trillion UAH.