Rising food prices amid economic recovery

There has been a notable rise in consumer prices in Ukraine, with food products seeing an increase of 0.4% in February alone. The largest price increases were for vegetables, beef, oil, dairy products, soft drinks, rice, bread, fish and fruits, according to the latest report from the National Statistics Service.

Eggs, pork, sugar, poultry, sunflower oil and cereal processing products saw their prices fall between 3.5% and 0.8%. On the other hand, alcohol and tobacco products became a little more expensive, marking an increase of 0.7%.

As for yarn and shoes, the prices of clothing and shoes fell by 3.5%, with clothing and shoes specifically falling by 3.5% and 3.4%, respectively. Transportation costs also fell by 0.2%, mainly due to lower rail fares and fuel prices.

In comparison, last February recorded a higher growth rate of 0.7%, bringing February’s annual inflation rate to 4.3% from 4.7% in January and 5.1% in December and November.

Read also: Price trends in Ukraine in 2024: products and services that saw a decline in January

Core inflation remained stable at 0.4% in February, as in January, after zero growth in December and an increase of 0.3% in November. Over one year, this brings underlying inflation to 4.5% compared to 4.6% in January.

Looking at the bigger picture, Ukraine’s inflation rate fell to 5.1% in 2023, after a significant jump to 26.6% in 2022, from 10.0% in 2021. Looking ahead, the National Bank of Ukraine has changed its inflation forecast, now expecting a rate of 5.8%. for 2023 and a rate of 9.5% for 2024, after adjustment against previous forecasts.

The Ukrainian government also updated its inflation expectations, lowering the forecast for 2023 from 14.7% to 7.1% and for 2024 from 10.8% to 9.7%.

In terms of GDP, Ukraine’s economy grew by 9.3% in the third quarter of 2023 compared to the same period in 2022, showing a robust recovery after a 10.5% decline in the first quarter and a decline by 31.4% in the last quarter of the previous one. year.

Read also: Ukrainian companies are looking for more workers amid rising vacancies, NBU reports

In December 2023, consumer prices increased to 0.7%, compared to 0.5% in November, keeping the annual inflation rate at 5.1%, in line with November figures.

Andriy Pyshnyi, head of the National Bank of Ukraine, highlighted the country’s economic resilience, noting that inflation fell from 26% to 5% in 2023, alongside positive economic growth. The National Bank improved its inflation forecast for 2024 from 9.5% to 8.6%, expecting rates to fluctuate from quarter to quarter.

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Read the original article on The New Voice of Ukraine

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