March brought another wave of price increases to Ukrainians. Food and clothing prices rose the most. Overall annual inflation rose to 14.6%, the highest since May 2023.
According to official data from the State Statistics Service, consumer prices in March increased by 1.7% compared to February. The following items rose the most:
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eggs — +18.8%;
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fruits — +6.6%;
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non-alcoholic beverages — +2.2%;
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sunflower oil — +1.7%.
Among non-food products, the leaders in price increases were:
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clothing and footwear — +13.3%;
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management services in apartment buildings — +9.5%;
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railway tickets — +4.4%;
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medical products — +1.9%.
Reasons for rising inflation: what was the impetus?
Experts explain: inflation has accelerated due to both seasonal and fundamental factors. First, last year's poor harvest due to bad weather affected food stocks, in particular fruit. Second, business costs are increasing - on energy, logistics, and labor costs.
The "low base" of comparison also played a role - in March 2024, inflation was only 0.5%, so the current figures look dramatically higher.
What to expect next
Analysts predict that the increase in inflation will continue at least until May. A gradual decline is possible after that. However, the main risk remains the war, which continues to put pressure on the economy.
The NBU expects inflation to be 8.4% by the end of 2025. The International Monetary Fund predicts 9%, and the government predicts 9.5%. As early as April, the National Bank may adjust its forecasts upward due to accelerating inflationary processes.
