Inflation in Ukraine accelerated to 8.1% in August due to fuel. The NBU named the reasons
Kyiv • UNN
In August, annual inflation in Ukraine rose to 8.1%, while prices increased by 0.1% over the month. Fuel prices saw the sharpest increase.
In August 2026, inflation accelerated to 8.1% year-on-year. On a month-on-month basis, prices rose by 0.1%. This is evidenced by data published by the State Statistics Service of Ukraine, UNN reports.
Details
The National Bank said that overall inflation slightly exceeded the forecast trajectory, primarily due to a more pronounced-than-expected increase in fuel prices, as well as higher administrative inflation amid increases in water supply and wastewater tariffs. At the same time, core inflation was slightly below the forecast due to slower-than-expected increases in service prices.
Fuel inflation accelerated significantly to 38.7% year-on-year
The reason for this dynamic was a sharp increase in gasoline and diesel prices at the end of July amid a jump in global oil prices. In August, gasoline prices continued to rise both month-on-month and year-on-year, while diesel prices increased in the first half of the month due to a shortage, then declined and stabilized in the second half thanks to increased import volumes. Gas prices also stabilized at the beginning of August due to the arrival of cheaper imports.
The increase in prices for raw food products slowed slightly (to 1.0% year-on-year)
The NBU said that this dynamic was primarily driven by a slowdown in the increase in prices for borscht vegetables due to the new harvest. Meat prices fell because of lower demand and sufficient supply on the market. In particular, increased investment in poultry farming contributed to a greater supply of chicken. Tomato prices declined due to ample supply amid the active arrival of the new harvest. At the same time, sugar prices fell more slowly than in July as a result of an expected reduction in supply due to a decrease in the area planted with sugar beet this year.
Core inflation remained at the level of the previous two months – 8.1% year-on-year
The rate of price growth for processed food products remained unchanged in August. On the one hand, dairy products, particularly cheeses and fermented milk products, rose rapidly in price due to higher purchase prices for milk and increased producer costs resulting from the impact of wartime and logistical risks. At the same time, the decline in butter prices accelerated thanks to substantial inventories, promotional offers, and high volumes of predominantly inexpensive imports. Soft drinks became cheaper amid high supply and significant competition in the market.
The increase in prices for non-food goods accelerated somewhat (to 1.1% year-on-year). Clothing and footwear became cheaper more slowly than in the previous summer months.
At the same time, the increase in service prices slowed (to 13.4% year-on-year). In particular, the rise in prices for mobile communications services slowed due to the base effect, as did the increase in the cost of health insurance and financial services. At the same time, taxi and goods transportation services became more expensive faster amid high fuel prices. The increase in the cost of housing rentals, café, hotel and boarding-house services, dental and veterinary services, footwear repairs, and dry cleaning also accelerated.
The increase in administratively regulated prices accelerated to 13.0% year-on-year
The National Bank notes that this dynamic was driven by increases in public transport fares and water supply and wastewater tariffs in many cities across Ukraine. In addition, the increase in alcohol prices accelerated amid higher prices for certain raw materials and increased logistics costs due to Russian attacks on warehouse infrastructure and the loss of inventories.
Price pressures remain elevated due to the consequences of Russia’s military aggression and the war in the Middle East
The intensification of Russian attacks on logistics, production, and energy infrastructure facilities increases business costs and limits the domestic supply of goods and services. Air terror also intensifies pressure on households’ and businesses’ expectations, the National Bank concluded.