In August 2025, inflation continued to slow down – to 13.2% year-on-year. Month-on-month, prices decreased by 0.2%. This is evidenced by data published by the State Statistics Service of Ukraine, reported by UNN.
Details
As reported by the National Bank of Ukraine, the actual inflation trajectory turned out to be lower than forecast, mainly due to the expansion of supply of agricultural products from the new harvest. Fundamental price pressure also eased under the influence of the NBU's monetary policy measures and a gradual decrease in pressure from the labor market. The trajectory of core inflation was close to the forecast.
The annual rate of increase in prices for raw food products continued to slow down – to 23.9% y/y. Prices for certain vegetables decreased year-on-year or significantly slowed down their growth rates due to higher yields than last year. The growth rates of fruit prices also began to slow down, but remained significant due to crop losses in spring due to frosts. The rates of price increases for flour and certain cereals also decreased. In contrast, the acceleration of price growth for all types of meat continued due to rising costs and a decrease in livestock.
In addition, according to the National Bank, core inflation continued to decline – to 11.4%. The rise in prices for processed products slowed down to 17.7% y/y. In particular, the growth in prices for dairy products, oil, bread, and bakery products slowed down.
The increase in the cost of non-food goods also slowed down – to 2.8% y/y. The decline in prices for clothing and footwear deepened.
Services inflation accelerated slightly – to 14.1%, which was primarily due to an increase in mobile communication tariffs. Financial services, taxi services, and health insurance also became more expensive at a faster rate. In contrast, inflation for the vast majority of other services slowed down.
NBU again kept the key policy rate at 15.5%11.09.25, 14:02 • [views_18411]
The growth rates of administratively regulated prices slowed down slightly – to 10.8% y/y. This dynamic was explained by a decrease in the rate of price increases for alcoholic beverages. In contrast, the acceleration of price growth for tobacco products continued.
The growth rates of fuel prices slowed down – to 6.0%. This dynamic is due to both a slight decrease in world oil prices and the strengthening of the hryvnia against the euro.
Overall inflation has been slowing down for three consecutive months somewhat faster than expected. At the same time, the dynamics of its core component are quite close to the NBU's forecast. In the coming months, the trend of declining inflation is expected to continue. This will be facilitated primarily by the further reflection of the effects of new harvests and the NBU's measures to maintain sufficient attractiveness of hryvnia assets and the stability of the foreign exchange market.