Ukraine: Inflation reaches an over one-year high in December
Latest reading: Inflation rose to 12.0% in December, above November’s 11.2%. December’s result marked the highest inflation rate since June 2023. The acceleration was primarily due to higher growth in prices for housing and utilities, hospitality, and transport.
Annual average inflation rose to 6.5% in December (November: 5.9%). Meanwhile, core inflation rose to 10.7% in December from November’s 9.3%.
Lastly, consumer prices rose 1.40% from the previous month in December, slowing down from November’s 1.90% increase. December’s result marked the weakest reading since August.
Panelist insight: EIU analysts commented on the outlook:
“Inflation has been increasing in recent months owing to pressures from energy shortages feeding through to the economy, and we expect this to continue throughout the winter as Russia continues to strike energy infrastructure and demand remains high. […] Inflation is forecast to average 12.8% in 2025, with high labour costs and electricity shortages keeping prices elevated in the first quarter, although we expect inflation to begin to moderate towards the end of 2025.”