The rise in food prices accelerated due to unfavorable weather for the harvest in the summer and fall.
In October, inflation in Ukraine increased to 9.7% year-on-year and exceeded the National Bank's forecasts. According to the regulator, prices continued to rise in November.
This is stated in the NBU's macroeconomic and monetary review.
“Yes, food inflation increased due to the more significant than expected impact of unfavorable weather conditions on agricultural crops. Administrative inflation and fuel prices also grew somewhat faster than expected,” the document says.
Fundamental inflationary pressure also increased in October. The NBU cites the rapid rise in prices of processed foods due to the increase in the cost of raw materials, electricity and wages, as well as the effects of the devaluation pass-through in previous periods on prices as reasons for the growth of core inflation.
Financiers also noted that this year food prices have also risen rapidly due to hot and dry weather in the summer and fall, which has negatively affected the yield, quality and ripening time of agricultural products, primarily local fruits and vegetables.
“Prices for non-food products have also accelerated their growth, primarily under the influence of the exchange rate factor in previous periods. This probably also affected the slowdown in the decline in prices for clothing and footwear. Prices for services, including healthcare, communications and personal care, have grown somewhat faster due to the growth in production costs,” the NBU added.
At the same time, the rise in fuel prices slowed in October. At the same time, prices for alcohol and tobacco have shown a rapid upward leap, in particular due to the weakening of the hryvnia and the fight against smuggling.
The growth of prices for medicines and other medical products has accelerated.
Recall that according to Deputy Head of the NBU Serhiy Nikolayevich, the National Bank does not rule out that by the end of 2024, inflation in the country will exceed forecasts. It will probably be at least 10%.
