Prices are rising: annual inflation in Ukraine has reached its highest level since 2023
9 May 21:58
In April 2025, annual inflation in Ukraine amounted to 15.2%, the highest since the spring of 2023. This is reported by "Komersant Ukrainian" with reference to the State Statistics Service.
This trend has already caused concern among consumers and economists alike, as it signals an increase in price pressure in a difficult economic situation.
In April 2025, the highest inflation rates were recorded for eggs (74.6%, accelerating from 44.7% in March), electricity (63.6%, stable due to the tariff increase in June 2024), and vegetables (35.8%, accelerating from 32.3% in March).
In April, core inflation was 0.4% for the month, but slowed to 12.1% year-on-year, the first time this figure has declined in 14 months.
The main reasons for the growth
First of all, inflation was pushed up by a rapid rise in food prices. According to official data from the State Statistics Service, food prices rose by 1.8% in April compared to March. Pork (7.9%), fruit, poultry, sugar and bread were the most expensive products. Newly harvested vegetables, such as cabbage and cucumbers, also saw a significant rise in prices due to a delay in the start of the season.
Prices for alcoholic beverages and tobacco products increased by 1.3% due to a 2.2% rise in tobacco prices. Transportation services fell by 0.3% due to a 2.2% decline in fuel and oil prices, although road and rail fares rose by 0.9% and 0.8%, respectively.
In addition, rising business costs, including electricity, logistics, and labor, forced manufacturers and suppliers to reconsider their pricing policies. At the same time, strong consumer demand, especially in large cities, remained a factor supporting price growth.
Read also: Industrial inflation reached 52%: what it means for business and consumers
Another important factor was the weakened hryvnia. It raised prices for imported goods and components, which affected the cost of production even for Ukrainian goods.
NBU’s response
The National Bank of Ukraine responded by raising its key policy rate to 15.5% in March. This decision was aimed at curbing inflation expectations and making loans more expensive, thereby limiting excessive liquidity in the economy. In addition, the NBU has stated that it is ready to continue to respond harshly to price risks if the pressure persists.
What’s next
According to the regulator’s forecast, inflation will begin to slow in the second half of the year, and may return to single digits by the end of 2025, unless new external shocks arise. Improvements in the energy sector, the stabilization of the hryvnia, and lower prices for certain products during the harvest season should play a positive role.
However, experts warn that inflationary risks remain high due to military spending, global instability, and domestic budget deficits. A comprehensive approach is needed to curb prices – not only monetary instruments, but also tax, agricultural and social policies.
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