High inflation in Ukraine is expected to persist until mid-2025, according to the National Bank of Ukraine.

In November 2024, the annual inflation rate in Ukraine rose to 11.2%.

The National Bank of Ukraine (NBU) reports this, citing the “Financial Stability Report.”

The report indicates that the acceleration of inflation is primarily driven by the rising prices of food products due to the summer drought and poor harvests. The increase in raw material costs has led to higher prices for finished goods, particularly in the food industry. Additionally, businesses have partially reflected in their prices the rise in electricity costs, increased labor expenses, and the depreciation of the hryvnia over the year.

“It is likely that inflation will remain at a double-digit level in the first half of next year. The inflationary pressure from rising food prices is expected to ease after the new harvest products enter the market,” the document states.

According to the NBU's forecast, factors such as the high base effects of 2024, the resilience of the energy sector, and the anticipated decline in energy resource prices on the global market will also contribute to lower inflation. Conversely, rising production costs, particularly labor costs due to wage increases and labor shortages, will continue to exert pressure on prices.

“According to the NBU's forecast, inflation will return to the target of 5% only in 2026,” the review indicates.

Background. Earlier, Mind reported that wholesale prices for industrial products in November 2024 compared to November of the previous year had increased by 24.1%. Prices within Ukraine rose by 24.8%, while those outside Ukraine increased by 15.7%.