Ukraine saw a slowdown in inflation in January to 26%

Ukraine saw a slowdown in inflation in January to 26%
Ukraine's inflation fell in January, but remains at a painfully high 26% in January y/y / bne IntelliNews
By Dominic Culverwell in London February 14, 2023

Ukraine saw a slowdown in inflation last month, Ukraine Business News reported on February 10. (chart)

The prices for goods compared to January 2022 were 26% higher; however, this is less than the annual inflation in December which reached 26.6%. Food prices increased by 1.4% in January, with vegetables seeing the highest price increase at 6.4%, followed by fruits 4.4%, eggs 2% and milk 2%.

Alcohol and tobacco prices rose by 0.8% whilst clothes and shoes decreased by 5.1%. In terms of amenities, housing, water, electricity, gas and other fuels rose by 0.1%; meanwhile, household items and appliances increased by 0.7%, and healthcare by 1.2%.

Transport saw a decrease of 0.7%, but communication increased by 1%, education by 1.1% and restaurants and hotels by 1.6%.

The repeated attacks on Ukraine’s energy infrastructure and production facilities have caused major disruptions and hurdles. As such, inflation will remain at a similar rate to last year, according to the Ministry of Economy.

Nevertheless, the Ukrainian government has successfully taken measures to dampen the impact of the war on the economy. Despite suffering a GDP decline of 30.4% last year, the war-torn country fared better than predicted, beating the International Monetary Fund (IMF) estimation that the economy would shrink by 33%. As such, inflation is unlikely to get worse and will remain at a similar rate.

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