Prices in Ukraine are rising faster than forecasts: what has become more expensive in February 2025.

Inflation in Ukraine rose to 13.4% in February 2025. According to the National Bank of Ukraine, prices also increased by 0.8% this month. Consumer inflation met expectations, but core inflation exceeded forecasts due to rising business costs, particularly for wages.

Prices for raw food products increased by 13.0% year-on-year. This is related to significant price increases for fruits, certain livestock products, flour, and cereals due to small harvests last year. Prices for pork, chicken, and sugar are approaching the price levels of our trade partners due to steady exports. However, the increase in vegetable prices has slowed somewhat due to increased imports and new harvests.

Core inflation rose to 12.0%, and prices for processed food products increased by 16.7% year-on-year. 'This situation is explained by rising prices for food raw materials, as well as increasing costs for enterprises for electricity, wages, and logistics,' the report noted.

Prices for bread, oil, meat, and dairy products rose particularly quickly. Imported goods such as cheeses, tea, coffee, and chocolate became more expensive due to rising prices in global markets.

Prices for non-food goods increased by 4.4% year-on-year, but the cost of clothing and footwear remains lower compared to last year. The cost of services rose by 14.3% year-on-year, especially in the fields of healthcare, transport, communication, recreation, and culture.

Administratively regulated prices increased by 18.1% year-on-year, mainly due to rising prices for excise goods. This occurred due to increasing production costs and fighting with businesses operating in the shadow sector, as well as the expected implementation of electronic excise stamps. Fuel prices rose by 13.9%, mainly due to rising prices for automotive gas.

According to forecasts from the National Bank of Ukraine, inflation will continue to rise in the coming months, but the growth rate will slow down in the second half of the year due to tightening monetary policy. It is expected that by the end of the year, inflation will decrease to a single-digit level and approach the target figure of 5%.