“Consumer inflation accelerated sharply in November: the NBU named the reasons Consumer inflation rose to 11.2% in November 2024, exceeding the forecast indicators of the NBU. The main factors were food and administrative inflation, as well as the increase in the price of non-food products.”, — write on: unn.ua
Details
“Consumer inflation accelerated sharply to 11.2% in November and exceeded the trajectory of the forecast published in the Inflation Report for October 2024. Food inflation remained the main factor in price growth. Administrative inflation also continued to accelerate,” the NBU reports.
It is noted that core inflation rose to 9.3% in November as a result of the rapid increase in the price of processed food products, further growth of business costs for energy supply and labor costs.
The National Bank of Ukraine indicates that in November, food inflation continued to rapidly accelerate due to a lower supply of certain agricultural crops, as well as livestock products, which led to an increase in the prices of raw food products.
Prices for non-food products also accelerated growth, primarily under the influence of the exchange rate factor. This probably had an impact on the slowdown in the decline in prices for clothes and shoes. Financial and communication services, education, culture and recreation, restaurants and hotels, and personal care services became more expensive due to the increase in production costs.
However, a slowdown in the growth of fuel prices was recorded in November, which is primarily related to the downward dynamics of world oil prices and the preservation of restrained demand. At the same time, alcohol and tobacco products rose in price, including under the influence of exchange rate effects in the previous months and the fight against shady products.
In addition, the expected increase in excise duties on tobacco products from January 1, 2025 could also motivate producers and importers to raise prices early. The growth of prices for pharmaceutical products, medical goods and equipment accelerated As before, administrative inflation was restrained by a moratorium on tariff increases for certain housing and communal services for the population.
We will remind
The IMF updated the baseline scenario for Ukraine, forecasting GDP growth of 4% in 2024. The fund expects the end of the war by the end of 2025 and a gradual normalization of economic indicators.