Inflation also rose in September by about 8.0%.
In August, consumer inflation accelerated to 7.5% year-on-year. One of the factors is the acceleration of food inflation due to a reduction in supply due to drought.
This is stated in the NBU monetary review for October 2024.
It is noted that most non-food products have risen sharply in price under the influence of exchange rate factor.
“Core inflation rose to 6.5% y/y from 5.7% y/y in July. This dynamic was ahead of the trajectory of the NBU's July forecast primarily due to the rapid growth in prices for processed food products due to secondary effects of rising raw material prices and rising production costs,” the report says.
While the growth in fuel prices slowed in August, given the adequacy of fuel reserves and lower than expected oil prices on world markets.
“The rise in price of tobacco products slowed somewhat, but their prices grew at a fairly high rate, including under the influence of the fight against shadow production. In addition, the growth of prices for pharmaceutical products, medical goods and equipment has accelerated, probably due to the exchange rate factor,” the NBU noted.
We will add that last year the National Bank of Ukraine refused to fix the official exchange rate of the hryvnia to the dollar. During this time, the dollar has risen in price by almost 13% for a number of reasons.