Ukraine: Inflation falls to over one-year low in June
Inflation came in at 12.8% in June, down from May’s 15.3%. June’s reading marked the lowest inflation rate since February 2022. The disinflationary trend was supported by falling transport prices and softer price pressures for food, clothing and footwear, and recreation and culture. In contrast, prices for housing and utilities rose at a stronger pace in June.
In addition, the trend pointed down, with annual average inflation coming in at 22.4% in June (May: 23.1%). Meanwhile, core consumer prices softened to 13.7% from 15.6% in May.
Lastly, consumer prices rose 0.79% in June over the previous month, accelerating from May’s 0.51% increase.
Our panel sees inflation continuing to decline through end-2023 on an increasingly tough base of comparison, still-subdued domestic activity and low external price pressures. That said, additional supply chain shocks, infrastructural damage and lower agricultural production due to Russia’s invasion pose risks to price stability ahead.