Annual inflation in Ukraine slows to 3.2% last month

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The consumer price growth rate in Ukraine accelerated to 0.5% in March from 0.3% in February. At the same time, the annual inflation rate slowed to 3.2%.

Source: Ukraine’s State Statistics Service

Details: The consumer price index was 1.5% in March 2023, so the annual inflation rate fell to 3.2% in March this year from 4.3% in February.

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The core inflation rate jumped to 1.0% in March from 0.4% in February-January. Given that in March last year, the core inflation was 1.3%, in annual terms it fell to 4.2% last month from 4.5% in February.

Prices for food and non-alcoholic beverages decreased by 0.2% in March (the price of eggs fell by 16.4%, and prices for sugar, lard, pork, sunflower oil, processed cereals, vegetables, and milk decreased by 2.5-0.3%).

At the same time, fruit prices rose by 4.1%, and prices for beef, dairy products, butter, poultry, bread, soft drinks and pasta increased by 1.6-0.3%.

Alcoholic beverages and tobacco products increased in price by 0.4%, driven by a 1.3% rise in tobacco prices. Clothing and footwear went up by 12.9%.

Transport prices increased by 1.7%, mainly due to a 4.4% rise in passenger rail fares and a 2.7% rise in fuel and oil prices. 

In the communications sector, prices rose by 0.5%, driven by a 15.7% increase in local telephone tariffs.

Background:

• In February, inflation in Ukraine slowed to 0.3% from 0.4% in January, and in annual terms, the consumer price index in February decreased to 4.3% from 4.7% in January.
• The National Bank of Ukraine (NBU) Board decided to cut the key policy rate by 0.5% to 14.5% effective 15 March. In addition, the NBU cut the interest rates on 3-month certificates of deposit and refinancing loans by 1.5%.

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