Inflation slowed to around 15.5%.
In April 2023, consumer inflation in Ukraine decreased to 17.9% in annual terms.
According to macroeconomic and monetary review NBU, the slowdown in price growth continued in May. Inflation slowed to around 15.5%. According to the National Bank of Ukraine, the increase in the price of food products slowed down significantly, which is explained by the decrease in the growth rates of raw materials and fuel costs, the recovery of production and logistics chains, including against the background of a stable situation in the energy sector.
As noted in the materials of the NBU, the decrease in world prices against the background of weak demand, as well as the uncertainty associated with the restriction of food transit through neighboring EU countries, led to a slowdown in the price increase of dairy products and sunflower oil.
The prices of groats and flour decreased, and the price of sugar slowed down thanks to last year’s harvests, which were sufficient for domestic needs. The annual growth rate of egg prices has accelerated.
What is happening with inflation in Ukraine
On April 27, 2023, the NBU changed the inflation forecast for 2023. The National Bank expects that in 2023 inflation in Ukraine will slow down to 14.8%, and in the following years – will return to a single-digit level.
It is expected that the further reduction of inflation will be facilitated, in particular, by lower prices of energy carriers on world markets and restrained domestic demand. An improvement in inflationary expectations is predicted, as well as an increase in the supply of goods thanks to the restoration of optimal logistics routes and production capacities.