Business costs push prices up.
Consumer inflation accelerated in December 2022. Although at the same time it remained moderate and lower than the forecast of the National Bank. This is evidenced by the data of the Macroeconomic and Monetary Review of the NBU (January 2023).
The NBU believes that business costs, in particular energy and logistics, remain the main factors in accelerating inflation.
“Consumer inflation has accelerated, further reflecting the consequences of Russia's full-scale war against Ukraine, including disruption of supply chains, destruction of factories, a reduction in the supply of goods and services, an increase in business production costs, as well as a shortage of electricity,” the review states.
Although compared to October, inflation grew more slowly due to the expansion of food supply, the de-occupation of territories, weak consumer demand, the strengthening of the hryvnia cash rate and the stabilization of inflationary expectations.
The NBU does not provide the inflation figure for 2022, however, the published schedule shows that according to estimates of the Central Bank, it was about 27.5%.
According to the NBU, the components of the basic CPI grew at a higher rate, which reflects high business costs, primarily on energy and logistics.
In contrast, product prices food slowed down under the influence of the expansion of the supply of vegetables, meat, cereals and sugar.
Read also: Product prices: buckwheat continues to fall in price in Ukraine
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