The annual inflation rate in January fell by less than a percent to 7.4%, compared with the same period last year, Ukraine’s State Statistics Service reported on Tuesday.
This January, consumer inflation decelerated more slowly than in the previous four months, when the statistics report showed a monthly decrease of 1%.
But the core inflation – an indicator of price pressures without the highly volatile prices – decreased to 7%, showing an optimistic pace of deceleration from 8% in December 2025.
The leader of January price pressure is again vegetables (up by 14.7%). Telecommunication services increased again by more than 4% after months of plateau. Fruits and fish took the third and fourth place, while the top 5 is rounded out by the category of “miscellaneous goods and services.”
Ukraine’s central bank previously voiced it is wary whether inflation will decelerate to its inflation target of 5% as Russia’s attacks on the energy sector and prolonged war keeps risks for higher inflation.
But now, it seems that inflation is steadily decreasing despite elevated risks under Russia’s intensified strikes on the energy grid. Which gave the central bank the green light to lower the key rate from 15.5% to 15% in January 2026.
Consumer inflation in Ukraine in January 2026
Annual consumer price inflation in January 2026 compared with December 2025 showed a figure of 7.4% compared with the same figures last year.
The comparison of monthly numbers shows an increase from 0.2% in December last year to 0.7% this month.
Inflation finally fell to a single digit after a year of double-digit price pressures that concerned Ukraine’s economists and regulators.
Ukraine’s economy is struggling with economic pressures from Russia’s full-scale invasion, which is making inflation sticky amid seasonal factors. But the path to the central bank’s 5% target is shortening after every single month, unless any more downside risks emerge.
Core inflation in Ukraine in January 2026
Core inflation slowed by 1% year-over-year in January. Ukraine’s statistics estimated core inflation to be at 7% in December 2025, compared with the 8% figure in the same month last year. Core inflation excludes volatile prices.
The comparison of monthly numbers shows an increase from 0.2% in December last year to 0.4% this month.
In November last year, core inflation dropped back to its 2024 level, marking a full year since the upward trend began and finally reversed.
Food prices in Ukraine in January 2026
Among top-5 categories that increased the most compared to last month, three of them are from food products.
This January, prices for vegetables again showed a moderate growth by 14.7% compared to last month. Although they have been decelerating in yearly figures.
Fruits increased by 2.5% compared to last month, while fish and fish products increased by 1.7%.
Overall, prices for food products and non-alcoholic beverages increased by 0.8% month over month.
Prices for grain products, sunflower oil, beef, milk and dairy products, bread, and non-alcoholic beverages rose by 0.6% to 1%.
Eggs fell in price by 7.7%, while prices for pork, butter, poultry, sugar, rice, and lard fell by 0.5%-2.2%.
Prices for alcoholic beverages and tobacco products rose by 1.1%, with tobacco products accounting for a 1.6% increase.
Utilities, services, and clothes prices in Ukraine in January 2026
Telecommunication services increased again after a period of deceleration. The reason for this is an increase of 33.0% in tariffs for local telephone services and 6.1% for mobile communications, the State Statistics reported.
Another inflation driver among the five leaders was “miscellaneous goods and services” – the key indicator of rising Ukrainian salaries, which are still increasing due to a war-caused shortage of labor, but at a more moderate pace.
Transport prices rose by 1.2%, mainly due to a 1.4% increase in the cost of fuel and lubricants and a 1.3% and 1.0% increases in road and rail passenger transport fares, respectively.
Clothing and footwear prices fell again – this time, by 4.8%, with clothing down 5.7% and footwear down 3.5%.
Prices for restaurants and hotels still showed a 0.9% increase.
Housing, water, electricity, gas, and other fuels rose by 0.1%. These are administratively regulated prices that the government keeps below market levels, which is why they have not yet increased significantly – unless Ukraine’s government decides otherwise.
Inflation in Ukraine began to decelerate from its 15.9% peak in May 2025, although it has been quite sticky. The key contributor to deceleration still remains an increase in the supply of new harvest of agricultural products.
The labor market constraints – the lack of workforce due to internal and external migration – still imposes tension on inflation since the middle of 2024.
Frosts in April last year made inflation sticky by increasing fruit prices.
Last year’s destruction of the energy grid that drove another wave of inflation in 2024 has started to weigh on inflation again, though the risk has not materialised for now.
The National Bank of Ukraine (NBU) Governor Andriy Pyshny previously noted that inflationary pressures had strengthened due to strikes on the energy infrastructure and higher budget spending.