In 2018, the official Ukraine’s inflation rate dropped below the 10% mark for the first time since 2013, official figures show. In 2019, the government is even more optimistic and targets an inflation rate of around 7.4%.
In 2018, the official Ukraine’s inflation rate dropped to 9.8%, below the 10% mark for the first time since 2013, official figures show.
In particular, the price of food and non-alcoholic beverages rose by 7.8%, when compared with 2017 (by 1.8% month-on-month). Statistics authorities said prices of vegetables and bread rose the most, by 27.8% and 21.5% respectively. Notable year-on-year price increases were also recorded for noodles (14.7%), baked goods (14.1%), as well as fish and fish products (11.2%). At the same time, fruit prices dropped by 17.0%, egg prices by 9.5% and sugar prices by 9.3%.
Moreover, tax increases caused alcohol and tobacco prices to rise. These were 17.9% higher year-on-year. Footwear and apparel prices remained relatively stable last year with a small increase of 2.0%, and even dropped by 2.5% month-on-month. According to the Ukrainian Statistics Agency, housing prices rose by 10.7%, when compared to December 2017.
Year-on-year price increases were also recorded for restaurants and hotels (13%), education (13.4%), transportation (12.9%) and health care (8.9%). Communication costs and prices in the recreation and culture sectors also rose by 15.1% and 4.4% respectively, when compared with the previous year.
After 24.9% and 43.3% inflation rate in 2014 and 2015 respectively as a result of a war-related devaluation of the national currency Hryvnia, the official inflation rate in 2016 first dropped to 12.4% and rose again in 2017 to 13.7%.
In 2019, the government currently targets an inflation rate of around 7.4%. The Ukrainian National Bank is even more optimistic for the time being and expects an inflation rate of 6.3% with a further tendency to decline in the following years. The next energy price hikes are expected in May 2019 as the International Monetary Fund provides further loan tranches.