Inflation on rise in Ukraine

Consumer inflation in Ukraine in November 2020 amounted to 3.8% in annual terms, accelerating from 2.6% in October.

As reported on the State Statistics Service website, compared with the previous month, consumer prices in November rose by 1.3%, and since year-start – by 4.1%.

On the consumer market in November, prices for groceries and non-alcoholic beverages increased by 1.4%. Most of all prices rose for vegetables, sugar, eggs, and sunflower oil rose in price (by 9.4-6.3%). Prices for processed cereal products, lard, bread, milk, dairy, and butter were up 2.5-1.1%. At the same time, fruit prices fell by 5.1%, and pork – by 1.1%.

Prices for alcoholic beverages and tobacco products increased by 0.8%, which is believed to be due to a rise in prices for tobacco products by 1.7%.

Clothing and footwear fell in price by 2.5%, including footwear – by 2.8%, and clothing – by 2.3%.

Read alsoConsumer inflation accelerates on weaker hryvnia – National BankThe rise in tariffs for housing, water, electricity, gas and other fuels by 8% was mainly due to an increase in prices for natural gas by 26.7%, as well as heating tariffs – by 8.6%.

Transport prices increased by 0.9%, primarily due to the rise in prices for fuel and oils – by 3.1%, as well as cars – by 0.7%.

NBU forecast

The National Bank of Ukraine believes inflation will enter the target range of 5% +/- 1 percentage point by the end of the year due to the gradual recovery of global economy and rising energy prices.

Inflation in Ukraine in 2019 slowed down to 4.1%, becoming the lowest in the last six years.