Ukraine's inflation slows to 7.2%, but price pressures expected to rise – NBU

Ukraine's inflation slows to 7.2%, but price pressures expected to rise – NBU

Photo: Getty Images

Ukraine's annual inflation slowed to 7.2% in June 2026, while consumer prices edged down by 0.1% compared with the previous month. Despite the slowdown, the National Bank of Ukraine (NBU) warned that inflationary pressures are expected to intensify in the coming months.

According to the central bank, headline inflation was in line with its April forecast. However, core inflation accelerated to 8.1% year-on-year, driven by higher labor costs, electricity prices, and fuel expenses.

Prices for raw food products fell by 0.2% compared with a year earlier, helped by increased supplies of pork, poultry, eggs, greenhouse vegetables, and seasonal fruit.

At the same time, inflation in the services sector accelerated to 13.7% as transport services, vehicle maintenance, driving lessons, and personal care services became more expensive.

Prices for processed food products continued to rise at an annual rate of 10.4%, with sunflower oil and frozen convenience foods posting the strongest increases.

Administered prices rose by 10.7% year-on-year, reflecting higher water supply tariffs in some cities as well as increases in alcohol and tobacco prices.

Fuel inflation slowed to 33.4% after diesel and liquefied petroleum gas prices declined during June.

The NBU expects inflationary pressures to strengthen in the months ahead, citing rising labor costs, planned increases in water tariffs, and higher public transport fares as the main drivers.

The central bank is scheduled to publish its updated macroeconomic forecast on July 30, followed by its quarterly Inflation Report on Aug. 6.

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