Ukraine’s inflation climbs to 11.2% y/y in November

Ukraine’s inflation climbs to 11.2% y/y in November

Ukraine’s economy is recovering, but inflation at 11.3% in November is rising again. / bne IntelliNews

By bne IntelliNews January 8, 2025

Inflation in Ukraine climbed to 11.2% year on year in November 2024, surpassing the National Bank of Ukraine’s (NBU) earlier forecasts, according to the latest inflation report says UBN on January 8. (chart)

Core inflation, which excludes volatile food and energy prices, reached 9.3% annually. The acceleration reflects a combination of supply constraints, rising production costs, and the devaluation of the hryvnia.

“The growth was due to higher prices for processed food products, increased business costs for energy supply and labour, and the devaluation of the hryvnia,” the NBU stated.

Processed food prices rose sharply due to a reduced supply of key crops and livestock products, pushing up raw material and final product costs. The depreciation of the national currency also affected non-food goods, slowing the decline in prices for clothing and footwear.

The service sector saw significant price increases across education, communications, culture, recreation and hospitality. Analysts attributed these rises to elevated production costs, particularly in labour and energy.

While inflation in manufacturing slowed to 24.1%, driven by a deceleration in electricity and gas price growth, the extractive industry faced renewed price hikes. Rising global demand, labour shortages, and increased energy and logistics costs were key factors behind the uptick.

#Ukraine #inflation #macro #bneChart

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