FX.co ★ Ukraine Inflation Slows from 2-Year High on Base Effects

In June 2025, Ukraine's annual inflation rate eased to 14.3%, down from a two-year peak of 15.9% in May, marking the first slowdown in consumer price inflation since March 2024. The sharp deceleration was particularly notable in housing and utilities, which dropped to 2.4% from May's 20.1%. This change was largely due to the base year starting to account for the impact of Russian strikes on Ukrainian grids and power infrastructure, which contributed to stable electricity prices compared to a significant rise of 63.6% previously. Despite this, inflation continued to climb in other critical sectors. Transportation costs increased to 6.2% from 5.8%, while food and non-alcoholic beverage prices rose to 23.2% from 22.1%, influenced by last year's smaller harvest and a cold spring that delayed fresh produce availability. On a monthly basis, consumer prices increased by 0.8%.