Inflation in Ukraine is slowing down, but price pressures and expectations remain

Consumer inflation in Ukraine slowed to 11.9% year-on-year in September, and this trend is expected to continue in October. Although price growth exceeds the National Bank of Ukraine's July forecasts, core inflation has fallen to 11.0%. However, price pressures remain persistent, primarily due to the slower decline in prices for processed products.

Source Minfin 

Inflation expectations among respondents, with the exception of banks, remain elevated, as evidenced by households' growing attention to price changes. The National Bank continues to adhere to a monetary policy that responds to this year's vegetable and grain harvests, as well as measures to maintain interest in hryvnia assets. However, additional business costs amid energy shortages and rising resource costs may create additional challenges for the economy.

Going forward, the NBU's monetary policy is aimed at easing price pressures and strengthening financial stability. However, the situation on the labor market and the overall economic context remain extremely important factors for improving inflation indicators in Ukraine.