Inflation Decreases by 0.2% in July, Not Rushing to Fall

Inflation in Ukraine fell just 0.2% in July following a sharp reduction a month earlier, with the annual inflation rate slowing down to 14.1% year-over-year in July, according to a press release by Ukraine’s State Statistics Service.

The June figure was estimated at 14.3% - a massive drop from 15.9% year-over-year in May, bringing some relief after a spike that lasted for almost a year. This was fueled by weak 2024 harvests, electricity prices and salaries hikes – all affected by Russia’s fall 2024-2025 attacks.

The core inflation rate did not rush to decelerate in July either, decreasing by 0.3% compared to the previous month. Year-over-year core inflation is 11.7%, compared with 12.1% in June.

July 2025 inflation across Ukraine’s consumer basket

In the consumer market in July, prices for food and non-alcoholic beverages decreased by 1.1%.

Prices for vegetables dropped significantly by 23.9%, while sugar declined by 2.8%.

Prices increased by 0.3% to 1.7% for fruits, eggs, pasta, meat and meat products, non-alcoholic beverages, lard, bread, fish and fish products, cheese, rice, processed grain products, sunflower oil, milk, and fermented milk products.

Prices for alcoholic beverages and tobacco products rose by 1.8%, mainly due to a 2.6% increase in tobacco product prices.

Clothing and footwear became 4.6% cheaper, with clothing prices down by 5.2% and footwear by 4.0%.

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Transport prices increased by 1.6%, primarily due to a 4.1% rise in fuel and lubricants.

Electricity and gas prices show neither growth nor decline, according to the state statistics report.

Previously, Ukraine’s central bank, the National Bank of Ukraine (NBU) was concerned that inflation was still higher than its forecast trajectory, leading to the central bank’s decision to keep the key rate steady at 15.5%.

After all the challenges last year, Ukraine faced the April frosts that delayed the sowing campaign and hampered future harvests. Another source of tension for the economy is security risks, caused by Russia’s protracted war against Ukraine.