The inflationary situation in Ukraine in 2024 has deteriorated significantly, and the annual price increase reached 12%. This was a logical consequence of a long war, which causes tremendous losses to the economy, reports the Ministry of Economy in its "Monitoring of the main events in the economy of Ukraine" for December 2024.
The increase in inflation has been caused by several factors. After regular attacks on the country's energy infrastructure, electricity prices have increased significantly, which caused the price of goods and services. In addition, the war reduced labor supply, and not only through mobilization, but also through external migration, which further limited the country's production capacity.
In particular, agriculture has also suffered significant losses due to adverse weather conditions, which worsened agricultural yields. This, in turn, affected the prices of food products, which increased by 14.2% compared to the previous year, which is higher than the total inflation rate (12%). Raw materials and low processing products were most expensive.
World agroinflation has also added pressure on domestic prices. Due to the reduction of supply in the world markets, food prices have increased even more. In particular, products with a high degree of processing have increased significantly.
According to forecasts, food prices can rise even more this spring because of energy supply and inflation problems.
