Annual inflation in Ukraine eased in June after more than two-year high

According to the Ukrainian Statistics Office, the annual consumer price inflation rate decreased to 14.3 percent in June from 15.9 percent in May, the highest level since April 2023.

The slowdown in inflation in June was mainly due to the base effect, as the housing and utilities sector grew significantly by 2.4 percent year-on-year, compared to a 20.1 percent year-on-year increase in the previous month.

The prices of food and non-alcoholic beverages increased by 23.1 percent in June, following a 22.1 percent year-on-year increase in May.

On a monthly basis, consumer prices increased by 0.8 percent in June, following a 1.3 percent increase in the previous month.

At its latest interest rate meeting on June 5, the Ukrainian central bank left its key rate unchanged at 15.5 percent after April, after raising it by 100 basis points in March and January. The central bank decided to raise it by 50 basis points in December and has not touched the base rate at its three previous interest rate meetings.

The Ukrainian central bank expects inflation to be 8.7 percent this year.