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4.0 Real Economy 4.1 Industrial production
Industrial Production in Ukraine increased 2.90% in January of 2022 over the same month in the previous year. New numbers have not been released since.
4.2 Inflation
Inflation in Ukraine has begun to slow. Inflation rates in Ukraine are decreasing for the second month in a row, the Ministry of Economy reported. In Ukraine, inflation is caused by two factors, internal and external. As Deputy Minister of Economy Denis Kudin noted, inflation is partly imported because we buy expensive energy resources, gas, and oil products, and high global prices are reflected in Ukraine's prices. However, according to Kudin, the main inflationary factor is war, which affects the supply of goods and production. Costs also increased due to disruptions in logistics, destruction of production assets and chains, and other purely military negative pressures. However, the inflation dynamics in Ukraine are gradually improving. There has already been a significant decrease in the price of certain goods and services, and the inflation rate has decreased for the past two months.
In August, prices in Ukraine increased by 23%. Inflation in Ukraine continues to grow, although its pace has slowed, the NBU reported. In July, inflation accelerated to 22.2% in annual terms and 23% in August. According to Deputy Chairman of the NBU Serhiy Nikolaychuk, this is primarily caused by
20 UKRAINE Country Report October 2022 www.intellinews.com