Ukraine’s Rate of Inflation Eases Further to 13.2%

The annual inflation rate in August showed a notable easing by a percent to 13.2%, compared to the same times last year, resulting in further relief for Ukraine’s hard-pressed economy.

Although the monthly data shows a modest decline in August compared to July – just a 0.2% fall month on month, according to the report released by Ukraine’s State Statistics Service.

Core inflation slowed by 0.5% compared to the previous month. Ukraine’s statistics estimated year-on-year core inflation to be at 11.4%, compared with the same figure in August.

Fruits and vegetables – one of the key contributors to higher inflation in Ukraine over the last year alongside war-caused energy costs and labor shortage – decelerated by 10.2% and 12.7% respectively in August compared to the previous month.

Sugar decreased by 1%, clothing and footwear became 3.2% cheaper

The monthly price increase on various products in August was rather moderate, not exceeding 3%. Telecommunication services increased the most last month, by 2.7% due to a 4.7% increase in mobile service tariffs.

Eggs increased in price by 2.3%.

Meat is still showing an upward trend, increasing by 2%, while fish and fish products increased by 1.4%. Previously, meat prices increased by another 1.4% due to higher production costs and a decline in livestock numbers, Ukraine’s central bank, the National Bank of Ukraine (NBU), wrote in in its September 2025 Macroeconomic and Monetary Review.

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Non-alcoholic beverages increased by 1.4% after a decrease in prices the month before. Milk also increased by 1%.

Prices for alcoholic beverages and tobacco products, at the same time, rose by 0.8%, mainly due to a 2% increase in tobacco product prices.

Inflation in Ukraine started decelerating from its 15.9% peak in May, although progress has been quite sticky. After a month of starting to decelerate to 14.3% in June, it only slowed down to 14.1% in July. But now it has now fallen by a full percentage point, confirming the NBU’s previously announced decline.

NBU, Ukraine’s central bank, previously wrote both headline and core inflation continued to slow down, according to its estimations. The key contributor is an increase in the supply of new harvest agricultural products. “

“Fundamental price pressures also eased under the influence of the NBU’s monetary policy measures and a gradual reduction in pressure from the labor market,” NBU wrote in its September 2025 Macroeconomic and Monetary Review.