Page 13 - Ukraine OUTLOOK 2025

parameters. The new US administration's stated policy goal of ending the war could lead to a negotiated ceasefire, "but a peace agreement is unlikely due to the difficult concessions that would be required from both sides. The parameters of a negotiated ceasefire, including security guarantees for Ukraine and the territories that will remain under Russian control, remain uncertain," Fitch said.
• 2.2 Inflation
Inflation will slow from 11.5% in 2024 to 7% in 2025, according to ICU.
Consumer price inflation in Ukraine has surged in the last months of 2024, reaching 11.2% year on year in November, up sharply from 3.3% in early summer. The spike, driven largely by soaring food prices and a substantial hike in electricity tariffs after Russia destroyed half Ukraine’s generation capacity, has raised concerns about the cost of living. However, analysts view the rise as largely transitory, with inflation expected to ease by late 2025.
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