Ukraine’s inflation reached 7.7% in July: what got more expensive

According to Ukraine’s State Statistics Service, inflation in the country accelerated to 7.7% year-on-year in July 2026. Compared to the previous month, prices rose by 0.3%.

This was reported by RBC-Ukraine, citing data from the National Bank.

The actual figures came in somewhat above the National Bank’s forecasts. The reasons were a shift in the seasonality of vegetables and higher administrative inflation.

Among raw food products, the most notable price increases were seen in vegetables used for borscht — due to a shift in harvest timing compared to last year. Meat, eggs, and fruits, including apples, either fell in price or saw slower price growth.

In the core inflation segment, the pace of price increases for processed foods slowed to 10%. Prices for sausages and confectionery grew the least, while sunflower oil continued to rise in price. Price growth for non-food goods accelerated slightly — to 0.8% — due to the prior weakening of the hryvnia.

In the services sector, restaurants and hotels saw slower price growth, but the cost of taxis and transportation rose due to high fuel prices. Rental housing became more expensive owing to internal migration and costly construction.

Among administratively regulated prices, the main drivers of growth were higher water and sewage tariffs in many cities, more expensive public transport fares, and rising prices for alcohol and tobacco due to costlier logistics and raw materials. Fuel price dynamics in July were uneven: prices remained stable at the start of the month, but in the second half, petrol and diesel rose noticeably due to a spike in global oil prices.

According to the NBU’s forecast, inflation will continue to rise in the second half of 2026 and reach 10% by year-end. Contributing factors include budget expenditures, wage growth at enterprises, the consequences of rising energy costs, and new water tariffs. Prices will be restrained by a moratorium on certain utility services and the NBU’s own policy. In 2027, inflation is expected by the regulator to slow to 6.9%, and in 2028 it is projected to return to the target level of 5%.