Ukraine Inflation


Inflation surges again in May

In May, consumer prices rose 0.8% over the previous month, which was well below the 1.3% price increase tallied in April and in line with market expectations. Nevertheless, the reading contrasted the unusual 0.6% price drop recorded in May last year, prompting annual inflation to jump from 9.4% in April to 11.0% in May. The slower rate of inflation was broad-based, including major categories such as food and non-alcoholic beverages as well as transportation. Consequently, the core inflation index, which excludes volatile items such as food and fuel, added 0.6% over the previous month, which pushed the year-on-year core inflation rate up to 7.8% (April: 7.3% year-on-year). The government expects inflation to moderate to 8.9% by the end of year, before dropping further next year to 7.9%.


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