How prices have changed in Ukraine

According to the State Statistics Service, inflation in Ukraine exceeded all forecasts in 2023, and despite the great war, price growth is slowing. Experts interviewed by Focus assessed the prospects for the consumer market in the winter of 2024.

Annual inflation in Ukraine slowed fivefold in 2023 and amounted to 5.1% at the end of the year. This is according to the State Statistics Service of Ukraine. In December, core inflation was zero in monthly terms, and for the year it amounted to 4.9% (in 2022 it was 22.6%). As a reminder, in 2022, inflation reached 26.6% at the end of the year.

According to CES economist Maksym Samoiliuk, the logistical constraints that prevented the export of products abroad were also reflected in the dynamics of food prices. In other words, there was a sufficient amount of produce on the domestic market in Ukraine, and prices were falling due to increased supply amid a large harvest.

“In some months, products even fell in price,” the economist explains.

In the future, according to experts, prices will be significantly influenced by such factors as the level of international financial assistance to Ukraine, pension indexation planned by the government for this year, the cost of energy resources on world markets, and the harvest that farmers will receive in 2024. As Focus recently wrote, the hryvnia exchange rate will also affect prices in Ukraine.

As a reminder, inflation in December, compared to November 2023, was 0.7%, and for the year as a whole – 5.1% (in 2022 it was 26.6%).

As Focus previously wrote, food will become more expensive as logistics become more expensive, so the detour route becomes much longer. According to Ukrainian experts, Ukraine imports bananas and citrus fruits, most seafood and fish, and animal feed, among other things. Prices for these goods have already risen slightly, but they may rise further.

Origin: Focus.