Inflation in Ukraine accelerated significantly by the end of 2024. According to the State Statistics Service, prices increased by almost 21% in November, and the total increase since the beginning of the year exceeded 101%. This is twice the target of the National Bank of Ukraine (NBU) and half a percentage point higher than the budget target.
Inflation – main growth factors
- Low yield: Weaker-than-expected harvests of many agricultural crops have led to higher prices for raw materials for the food industry.
- Increase in production costs: Increased electricity and labor costs affected the cost of production.
- Exchange rate fluctuations: The weakening of the hryvnia in previous periods caused exchange rate effects that were reflected in prices.
The prices increased the most for:
- Eggs: In November, prices increased by 55% compared to October.
- Bread: It has risen in price by more than 15% in a year.
- Vegetables for the “borscht set”: Potatoes, onions, carrots, beets, and cabbage have doubled or even tripled in price.
- Electricity: Prices rose to 63% back in the summer of 2024.
Reasons for the increase in vegetable prices:
- Weather conditions: Drought in the summer and heavy rains during harvest negatively affected yields.
- Logistical difficulties: Military operations complicated logistics, which increased the cost of delivering products.
Experts note that the market is gradually stabilizing due to the arrival of imported products and late varieties of vegetables. In early December, prices for potatoes and onions decreased, although they continue to grow for carrots, cabbage and beets.
