Ukraine records lowest inflation in over three years

Ukraine records lowest inflation in over three years
Ukraine's inflation fell to 3.2%, its lowest level in three years, leading investors to anticipate more rate cuts from the NBU. / bne IntelliNews
By Ben Aris in Berlin April 10, 2024

Ukraine's inflation rate dropped to its lowest level in more than three years in March 2024, marking a significant slowdown in consumer price growth, according to data released by the State Statistics Service.

In March, the annual inflation rate in Ukraine stood at 3.2%, the lowest since October 2020 when it was recorded at 2.6%. The monthly increase in prices was modest at 0.5%, contributing to a year-to-date inflation rate of 1.2%.

The slowdown in inflation was primarily driven by a decrease in prices for food products and non-alcoholic beverages, which rose by 0.2% over the year. Notably, prices for vegetable oil surged by 13.5%, while milk and meat products saw gains of 8.8% and 7.7% respectively. However, prices for eggs, oil, sugar, and vegetables experienced declines.

Meanwhile, prices for alcoholic beverages and tobacco recorded an 8.4% increase, while clothing and footwear prices decreased by 6.7%. The cost of housing, water, electricity, gas, and other fuels continued to rise, climbing by 12.8%.

Healthcare services saw an increase of 9.1%, while transport costs rose by 6%. Prices for recreation and culture fell by 2.3%, while education expenses saw an uptick of 11.8%.