In April 2025, inflation picked up to 15.1% yoy. In monthly terms, prices grew 0.7%. This is according to data published by the State Statistics Service of Ukraine.
The growth in consumer prices was slightly below the trajectory of the NBU’s forecast published in the April 2025 Inflation Report.
April’s acceleration in inflation was largely driven by the residual effects of last year’s lower harvests and a further increase in prices for alcoholic beverages and tobacco products. High labor costs incurred by businesses amid staff shortages continued to be a driver of inflation, as did robust consumer demand. However, the NBU’s measures to maintain sustainable FX-market conditions and preserve the appetite for hryvnia savings restrained price growth. An additional impact came from the decline in global oil prices, as well as a cooling of price pressures in the domestic wholesale electricity market.
Growth in raw-food prices picked up to 22.2%
Prices for raw foods continued to rise in annual terms due to both the residual effects of last year’s low harvests and the impact of April’s short-term frosts. The prices of flour, cereals, fruits, and vegetables, primarily those used in the cooking of borshch, rose faster due to the supply of quality products being low. Another driver was a seasonal shift in demand for certain food products, mainly eggs, due to Easter, which this year fell on April (unlike Easter 2024, which was in May). At the same time, the arrival of imported food products and greenhouse vegetables put somewhat of a drag on price growth.
Core inflation slowed to 12.1%
The growth in the prices of processed foods held steady in April (17.3% yoy). The increase in the cost of raw food inputs and the further growth in businesses’ labor costs led to an accelerated rise in prices for bread and bread products, as well as meat products. Meanwhile, the rise in the price of sunflower oil slowed somewhat as prices in global markets stabilized, and the increase in supply contributed to the slower growth in the price of certain dairy products.
The growth in the prices of non-food products decelerated to 3.8% yoy. This was facilitated by the maintenance of a sustainable situation in the FX market, among other things.
Services inflation remained at a fairly high level of 14.6% yoy, primarily due to continued wage growth and robust consumer demand. Compared to March, the cost of restaurant and hotel services, transportation, and financial services increased faster. By contrast, the growth in prices for personal care and insurance decelerated.
Administered prices were up 19.5%
The faster increase in the prices of excisable products was due to a further rise in production costs, tax changes (a hike in excise taxes and their conversion into euros that took effect at the end of March 2025; and the application of a 1.1 multiplier to the minimum tax liability, effective 1 April to 31 December 2025) for manufacturers and importers of tobacco products, and tighter measures to combat shadow market supply. Thanks to a strengthening of the hryvnia exchange rate against the U.S. dollar, pressure on the prices of pharmaceutical products and medical supplies and equipment eased slightly.
Fuel price growth decelerated to 3.7%
Fuel price growth decelerated in April from March due to global crude oil prices being lower. Meantime, the gradual growth in demand and the strengthening of the euro exerted upward pressure on prices.