Industrial inflation jumped due to electricity prices.
Rise in prices electricity in June provoked an increase in both consumer and industrial inflationinflation. The producer price index (PPI) of industrial products in Ukraine increased by 14% in June compared to May.
This was reported by the State Statistics Service.
Such industrial inflation has not been observed in Ukraine for 30 years . The last time there were high rates was only during the hyperinflation of 1992-1995. At the same time, back in March 2024, inflation in industry was practically zero.
“The rapid acceleration of industrial inflation will provoke an acceleration in the growth of the consumer price index,” the report says.
According to experts, an increase in the PPI by 10% leads to about a 1% increase in the consumer price index.
In annual terms (from June 2024 to June 2023), the growth of the industrial producer price index accelerated to 26.7%.
In particular, in the energy sector, the annual industrial inflation rate reached 48.1%, mining industry – 10.8%, processing – 7.2%.
Let us remind you that inflation in the consumer market in June compared to May was 2.2%, and since the beginning of the year – 4.3%. Such significant fluctuations in the consumer price index were partly observed in March.
According to the NBU, inflation will gradually increase, in particular in the coming months as a result of 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 costs and the exhaustion of the effects of last year's significant harvests and the expected increase in excise taxes.
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