Inflation in Ukraine accelerated to 8.1% in August. 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 increased by 0.1%. This is evidenced by data published by the State Statistics Service of Ukraine, reports UNN.
Details
According to the National Bank, headline inflation slightly exceeded the projected path, primarily due to a more pronounced-than-expected rise in fuel prices, as well as higher administratively regulated inflation amid increases in water supply and wastewater tariffs. At the same time, core inflation was slightly lower than forecast due to slower-than-expected increases in service prices.
Fuel inflation accelerated significantly to 38.7% year-on-year
This dynamic was caused by a sharp rise in petrol and diesel prices at the end of July amid a surge in global oil prices. In August, petrol 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 in early August owing to the arrival of cheaper imports.
The increase in prices for raw food products slowed slightly (to 1.0% year-on-year)
According to the NBU, this dynamic was primarily driven by a slowdown in the rise in prices for borscht vegetables thanks to the new harvest. Meat became cheaper due to lower demand and sufficient supply on the market. In particular, increased investment in poultry farming contributed to a larger 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 sown with sugar beet this year.
Core inflation remained at the level of the previous two months – 8.1% year-on-year
The pace of increase in prices for processed food products remained unchanged in August. On the one hand, dairy products, particularly cheeses and fermented milk products, became more expensive rapidly due to higher procurement prices for milk and increased producer costs resulting from war-related and logistical risks. At the same time, the decline in butter prices accelerated thanks to substantial stocks, promotional offers and high volumes of predominantly inexpensive imports. Non-alcoholic beverages became cheaper amid ample 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 mobile communications prices slowed due to the base effect, as did increases in health insurance and financial service prices. At the same time, taxi and goods transportation services became more expensive faster amid high fuel prices. The cost of housing rentals, café, hotel and boarding-house services, dental and veterinary services, footwear repair and dry cleaning also increased more rapidly.
The increase in administratively regulated prices accelerated to 13.0% year-on-year
The National Bank notes that this dynamic was driven by higher public transport fares and water supply and wastewater tariffs in many Ukrainian cities. In addition, alcohol prices rose faster amid higher costs for certain raw materials and increased logistics costs due to Russian attacks on warehouse infrastructure and the loss of commodity stocks.
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 puts additional pressure on the expectations of households and businesses, the National Bank concluded.