Inflation in August 2025 continued to slow, reaching 13.2% year-on-year. The actual inflation trajectory was below the forecast of the National Bank of Ukraine (NBU).
According to the NBU, this slowdown was supported by an increased supply of new harvest agricultural products.
It is noted that fundamental price pressures also weakened under the influence of the NBU’s monetary policy measures and the gradual easing of labor market pressures. The core inflation trajectory was close to the forecast.
“Annual growth rates for raw food prices further slowed — to 23.9% y/y. Prices for some vegetables decreased year-on-year or significantly slowed their growth due to higher harvests compared to last year. Fruit price growth also began to slow but remained significant due to spring frost losses. Prices for flour and certain cereals fell. At the same time, the acceleration of price growth for all types of meat continued due to higher production costs and a reduced livestock population,” the NBU clarified.
At the same time, they noted that the rise in processed food prices slowed to 17.7% y/y. In particular, the growth of prices for dairy products, vegetable oil, bread, and bakery products slowed.
The increase in non-food goods prices also slowed — to 2.8% y/y. Price declines for clothing and footwear deepened. Service inflation slightly accelerated — to 14.1%. Fuel price growth slowed — to 6.0%.
“In the coming months, the trend of declining inflation is expected to continue. This will be facilitated primarily by the further effects of new harvests and NBU measures to maintain sufficient attractiveness of hryvnia assets and the stability of the currency market,” the NBU concluded.
