Inflation in the consumer market accelerated in June 2024.
In In June, consumer inflation in Ukraine on an annualized basis accelerated to 4.8% from 3.3% in May, which was due to several reasons.
This is a comment on the data previously published by the State Statistics Service of the National Bank of Ukraine.
According to NBU experts, this does not differ significantly from the forecast in the NBU inflation report for April of this year.
According to NBU experts, the acceleration of inflation is explained by the growth of tariffs for energy resources, as well as higher fuel prices.
Among the factors for the growth of consumer prices is a stop in the dynamics of reduction in the cost of certain popular food products – eggs, sugar, flour, cereals and others.
“Fundamental inflationary pressure also increased, although the dynamics of core inflation corresponded to the forecast (5.0% in annual terms in June),” the NBU said in a statement.
Among the factors for the growth of basic inflation indicators is also an active increase in business costs for labor and electrical energy. Inflationary processes were partially influenced by the deterioration of inflation expectations, in particular the weakening of the national currency.
At the same time, according to experts of the National Bank, the restraining factors of inflation processes were “secondary effects of cheaper raw food products.”
What will happen to inflation next
According to the NBU, inflation will gradually increase, in particular, in the coming months due to continued market pressure on businesses, which will be forced to spend more money to support production processes. The growth of inflation will also be facilitated by the exhaustion of the effect of significant harvests of previous years and a new factor – the expected increase in excise taxes.
Inflation will grow moderately in the coming months, primarily due to continued pressure on business expenses, the exhaustion of the effects of significant last year's harvests and the expected increase in excise taxes.
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