Inflation Continues to Ease
According to the National Bank of Ukraine (NBU), inflation in August 2025 slowed to 13.2% year-on-year, compared to previous months. In monthly terms, consumer prices even decreased by 0.2%.
The NBU noted that the actual trajectory was lower than projected in the July Inflation Report, primarily due to the expansion of agricultural supply from the new harvest. At the same time, fundamental pressures weakened under the influence of tighter monetary policy and a gradual easing of labor market imbalances.
Food Prices
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Annual growth in raw food prices slowed to 23.9%.
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Prices for vegetables decreased or rose much more slowly due to higher harvest volumes.
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Growth in fruit prices also slowed but remained significant after spring frost damage.
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Prices for flour and cereals stabilized, while meat prices continued to accelerate amid rising production costs and livestock shortages.
Core Inflation at 11.4%
Core inflation dropped to 11.4%.
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Processed food price growth slowed to 17.7%, with dairy products, oils, bread and bakery items showing weaker dynamics.
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Non-food goods inflation fell to 2.8%, with deeper price cuts in clothing and footwear.
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Services inflation slightly accelerated to 14.1%, mainly due to higher mobile tariffs, financial services, taxis and health insurance. However, most other services showed slower growth.
Regulated Prices and Fuel
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Growth in administratively regulated prices slowed to 10.8%, as alcohol price growth eased, though tobacco price increases continued.
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Fuel prices rose just 6%, reflecting a drop in global oil prices and the strengthening of the hryvnia against the euro.
Outlook
The NBU emphasized that inflation has been slowing for three months in a row, somewhat faster than forecast. The downward trend is expected to continue in the coming months, driven by:
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the arrival of new crop supplies,
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measures to maintain the attractiveness of hryvnia assets,
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and foreign exchange market stability.
The updated inflation forecast will be presented during the NBU’s Monetary Policy Press Briefing on October 23, 2025, with a full Inflation Report on October 30, 2025.
