As expected, headline inflation continued to slow down to 55.3% yoy in July  after hitting a peak in April (60.9%). The disinflation trend was underpinned by hryvnia exchange rate stabilization, tight monetary and fiscal policies and subdued consumer demand.  

In addition, a substantial supply of vegetables and fruit of this year's harvest pushed down prices for crude foodstuffs in July. As a result, the Consumer Price Index declined by 1.0% mom.

The reduction in prices for some components of core inflation, in particular, prices for clothes and footwear, which was mainly due to the seasonal factor, led to a 0.1% decline in core CPI inflation in July. The year-on-year core inflation continued to decelerate to 43.8%.

“Bringing headline inflation down to single digits and maintaining low and stable rates of inflation thereafter remains the key objective of the NBU monetary policy,” said Sergiy Nikolaichuk, Director of the NBU Monetary Policy and Economic Analysis Department. According to him, the price trends recorded in recent months reflect fading devaluation effects. The steady disinflation trend is expected to persist in the period ahead.

A detailed analysis of the dynamics of certain price indices, their components, as well as the factors behind these developments is available in the quarterly analytical publication “Inflation Review". This document is published on the NBU's official website to keep the public informed about inflation developments in Ukraine.