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a faster-than-expected decrease in fuel cost due to lower world oil prices and improved domestic logistics. Despite this, inflationary pressure remains significant. The effects of the war, in particular the destruction of production and logistics assets, will continue to have a decisive influence on the prices of almost the entire consumer basket of goods. Worsening inflationary expectations are also putting upward pressure on prices. As well, the NBU admits that the July devaluation of the hryvnia, which was necessary to reduce imbalances in the foreign exchange market, had an additional contribution to inflationary development.
4.2.1 CPI dynamics
The annual inflation rate in Ukraine accelerated to 23.8% in August of 2022 from 22.2% in the previous month – the highest since February of 2016 and above the central bank’s estimate of 23%.
Costs accelerated for food and non-alcoholic beverages (30.7% vs 28.9% in July), driven by staples such as sugar and eggs, household items and furnishings (21.6% vs 16.2%), and restaurants and hotels (17.2% vs 16.4%).
Inflation remained at extremely high levels for transportation (at 40.4%).
Food prices in Ukraine have increased by 25%. Since the beginning of 2022, prices for food products and alcoholic beverages in Ukraine have increased by an average of 25%. According to the State Statistics Service, the largest price increases were seen in fruit at 60.2%, vegetables at 58.5%, fish at 33.1%, bread at 29%, and sugar at 27.9%.
The only product whose price decreased in August 2022 compared to December 2021 was eggs, by 17%. As for alcohol and tobacco products, their prices have increased by 23.6% and 13.3%, respectively, since the beginning of the year.
Among non-food goods, fuel and lubricants increased by 64%, and household appliances by 25.9%, which added the most in price.
There has been no new PPI prices numbers since February.
21 UKRAINE Country Report October 2022 www.intellinews.com