Ukraine: Inflation continues steep climb in December, ends 2014 at 14-year high
January 6, 2015
In December, consumer prices increased 3.0% over the previous month, which was above the 1.9% rise registered in November and marked the highest reading since May. December’s figure was driven by an across-the-board increase in prices, with prices for food and beverages as well as prices for miscellaneous goods and services recording the largest increases in December compared to November.
Annual inflation for 2014 ended the year at 24.9%, drastically above 2013’s 0.5% and marked a 14-year high. Inflation has skyrocketed since the onset of the military conflict in Eastern Ukraine, pushed up by sharp increases in the price for gas along with a drastic depreciation of the hryvnia. In addition, annual average variation in consumer prices swung from 2013’s 0.3% decrease to a 12.1% increase in 2014.