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4.0 Real Economy 4.1 Industrial production
Industrial production bounced in March y/y up by half on low base effects.
4.2 Inflation
Inflation in war-torn Ukraine is lower than in peaceful European countries. As stated in an Inflation Survey from the Ministry of Economy, domestic prices fell by 1.4% in August thanks to the arrival of the newly harvested crops on the market. This ensured the return of annual inflation rates to single-digit numbers of 8.6%. Prices were also pushed down by fixing tariffs for communal services and price regulation of some goods. Also, prices are influenced by the stable exchange rate of the hryvnia, governed by NBU restrictions and significant financial assistance from external partners. Currently, the annual inflation rate in Ukraine is 8.6%, which is significantly lower than in some European countries. Inflation in Hungary is 14.2%, the Czech Republic is 10.1%, and Slovakia is 9.6%. "During the war, despite permanent destructive shocks as a result of aggression, the economy of Ukraine stabilized the system of internal and external relations between subjects of economic activity, including the dynamics of consumer prices," the Ministry of Economy emphasized.
Ukraine's inflation rate dipped to 10% in August, marking the first time it has touched this threshold since June 2021. The National Bank's published
32 UKRAINE Country Report October 2023 www.intellinews.com