In December 2024, inflation accelerated to 12.0% year-on-year. Month-on-month, prices rose by 1.4%. This is evidenced by data published by the State Statistics Service of Ukraine, UNN reports with reference to the NBU.
Details
"Actual consumer inflation in December 2024 was higher than the NBU's forecast published in the October 2024 Inflation Report," the statement said.
The main reasons cited were a sharp rise in food prices due to low harvests, as well as increased underlying price pressure due to higher business costs for energy and labor. Another important factor was the weakening of the hryvnia exchange rate.
Add
In the first months of 2025, inflation is expected to continue to rise due to the further impact of the above-mentioned temporary and fundamental factors.
At the same time, the NBU predicts that inflation will return to a steady decline in the second half of 2025 and will be heading toward the NBU's 5% target over the appropriate policy horizon.
The following factors, in particular, will contribute to the decline in inflation:
measures of the NBU's interest rate and exchange rate policies;
higher yields;
improving the situation in the energy sector;
reducing the fiscal deficit;
moderate external price pressure.
The new information on price dynamics will be taken into account when making monetary policy decisions and in the updated macroeconomic forecast to be published on January 23.
Recall
Earlier, UNN wrote that consumer inflation in November 2024 rose to 11.2%, exceeding the NBU's forecasts. The main factors were food and administrative inflation, as well as rising prices for non-food products.