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Inflation in Ukraine drops to three-year low: What went up in price in 2023

Inflation in Ukraine drops to three-year low: What went up in price in 2023 Inflation in Ukraine fell to three-year low (Getty Images)
Author: Maria Kholina

Consumer price growth in Ukraine in 2023 slowed to 5.1%. This is the lowest figure since 2020 when inflation was at 5.0%, according to the State Statistics Service.

According to the statistical agency, prices rose by 0.7% in December.

However, due to high growth rates at the beginning of the year, the annual inflation rate for 2023 was 12.9%.

Prices for goods and services

Food and non-alcoholic beverages became 4.0% more expensive over the year. Meat and meat products saw the highest increase at 12.4%, followed by butter at 9.9%, and milk at 9.7%.

Prices for alcoholic beverages and tobacco products increased by 9.6%, while clothing and footwear fell by 6.3%.

Housing, water, electricity, gas and other fuels became 12.8% more expensive.

Household goods and appliances increased by 0.7%, health care by 8.7%, transportation by 3.2% (including a 2.7% increase in fuel prices), communication prices rose by 1.5%, recreation and culture decreased by 1.1%, education became 12.8% more expensive, and restaurants and hotels increased by 13.0%, various goods and services by 11.3%.

Inflation slowdown and forecasts for 2023-2024

In October, the National Bank improved its inflation forecast for the end of 2023 from 10.6% to 5.8%. The decrease in inflation is mainly attributed to a large supply of food products against the backdrop of higher yields, increased production, and difficulties with the export of agricultural products. At the same time, the inflation forecast for 2024 was raised from 8.5% to 9.8%.

In November, the government improved its inflation forecast for 2023 from 14.7% to 7.1%. For 2024, the forecast was revised from 10.8% to 9.7% (December to December calculation).

Consumer prices in Ukraine rose by 26.6% in 2022, and in 2021, inflation was at 10.0%.