Inflation in Ukraine accelerated to 13.4 y/y in February

Consumer price growth in Ukraine slowed to 0.8% in February 2025 from 1.2% in January. This is according to the State Statistics Service.

On an annualized basis, inflation accelerated to 13.4% in February.

Core inflation last month fell to 0.7% from 1.3% in January and December.

According to the agency, prices for food and non-alcoholic beverages increased by 1.2% in the period under review compared to January. Eggs and sunflower oil rose the most (by 3.5% and 3.4%), respectively.

Alcoholic beverages and tobacco products went up by 1.3%, driven by a rise in tobacco prices (+2%). At the same time, rail passenger transportation fell by 0.9%.

In late January, the National Bank downgraded its inflation forecast for the current year from 6.9% to 8.4%.

Last year, inflation in Ukraine reached 12%, exceeding the figures for 2023 (5.1%) and the forecasts of government agencies. In 2024, core inflation was 10.7%, which is significantly higher than 4.9% in 2023.

As GMK Center reported earlier, the NBU Board decided to raise the key policy rate from 14.5% to 15.5% per annum starting from March 7. The decision was made to maintain the stability of the foreign exchange market, keep expectations under control and gradually bring inflation to the 5% target over the policy horizon of the regulator’s board. The key risk to inflationary dynamics and economic development remains a full-scale war.