Ukraine’s Annual Inflation Dropped to 14.3% in June

In June, inflation in Ukraine eased to 14.3% year-over-year, down from 15.9% in May, the country’s State Statistics Service reported.

Core inflation, a significant signal for long-term price pressure dynamics for consumers and central banks, slowed down 0.3% in June compared to the previous month.

Inflation finally starts to ease after growing for almost a year and exceeding the 15.5% key rate of Ukraine’s central bank, the National Bank of Ukraine (NBU). But in June, it started decelerating thanks to zero electricity price growth. 

“The most significant factor behind the deceleration of annual inflation was the zero growth in electricity prices,” Ukrainian think tank Institute for Economic Research (IER) wrote in their Telegram post.

In early June 2024, the electricity tariff increased to Hr.4.32 per kilowatt-hour ($0.1). Ukraine’s authorities did not increase the tariff since then, causing the fall of the price category to 0% in the Consumer Price Index – a sharp drop from 63.6% year-over-year recorded in May, IER wrote.

Last month, prices for food and non-alcoholic beverages climbed by 1.4% compared to May 2025, and by 23.3% compared to June 2024. 

Among food categories, the largest monthly increase was in fruit prices – by 13.5% in June (a 51.7% increase over the past year). Fruit prices started increasing faster this year due to spring frosts, when the April temperature in Ukraine decreased to zero and below – an abnormal climate event for the Ukrainian climate. 

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The prices for meat and meat products, non-alcoholic beverages, fish and seafood, lard, bread, fermented milk products, butter, and sugar increased by 0.2%-3.3% compared to the previous month. 

Meanwhile, vegetable prices dropped by 8.1%, while prices for eggs, pasta, milk, and rice decreased by 0.4% to 1.1%, compared to the previous month. 

Alcoholic beverages and tobacco rose in price by 1.1%, due to a 1.8% increase in tobacco prices. Prices on tobacco are moderately increasing due to imposing new excise taxes in euros, as Ukraine is on its way to accession to the European Union. 

Clothing and footwear prices decreased by 2.2% compared to June 2025, with clothing prices down by 2.3% and footwear by 2.1%.

Transport prices rose by only 1.1%, primarily driven by a 5.4% increase in railway passenger fares and a 2.3% rise in fuel and lubricants.

Starting from July-August 2024, inflation in Ukraine started decelerating, first fueled by the lack of harvests, then intensified by the increase in salaries and energy prices, fueled by the consequences of Russia’s invasion of Ukraine. 

Inflation did not slow as much as the National Bank of Ukraine (NBU) had anticipated, with actual price growth exceeding the NBU’s projections. According to the NBU, the main factor was unexpected spring frosts, which led to lower-than-expected harvests and a reduced supply of fresh vegetables and fruits.

“The NBU expects inflation to continue declining in the second half of the year, supported in particular by the effects of monetary policy measures,” the NBU wrote in its Telegram post commenting on inflation’s latest updates.