In June 2024, consumer inflation accelerated to 4.8% in annual terms from 3.3% in May. This is evidenced by the State Statistics Service, UNN reports.
According to the NBU, the actual rate of price growth was only slightly lower than the forecast in the April 2024 Inflation Report.
"The acceleration of inflation was driven, in particular, by higher electricity tariffs, a more significant increase in fuel prices, and a slowdown in the decline in prices for certain food products (including eggs, sugar, flour and cereals, etc.).
Fundamental inflationary pressures also increased, although the dynamics of core inflation was in line with the forecast (5.0% yoy in June)," the report said.
According to the NBU, the acceleration in core inflation was driven by a further increase in business costs for labor and electricity, as well as a certain deterioration in inflation expectations, in particular due to the hryvnia's depreciation. In contrast, secondary effects of cheaper raw food products were restraining factors.
"Inflation will grow moderately in the coming months, primarily due to continued pressure on business costs, the exhaustion of the effects of last year's significant harvests, and the expected increase in excise taxes," the NBU summarized.