In May 2026, Ukraine experienced a slowdown in consumer price growth, with a monthly increase of 0.9% and an annual inflation rate of 8.2%, according to the State Statistics Service.
The reported monthly inflation rate of 0.9% marks a decrease from April’s figure of 1.4%, and March’s 1.7%. Year-on-year, the inflation rate has also decreased from 8.6% in April 2026.
Among the most significant price increases in May, fruit prices surged by 11.1%, while transportation costs for passenger vehicles rose by 2.7%. Conversely, several products saw a decline in prices, most notably eggs, which dropped by 15.3%, marking the largest decrease among essential food items.
Core inflation, which excludes temporary fluctuations caused by seasonal and administrative factors, was recorded at 0.7% month-on-month and 7.9% year-on-year.
The National Bank of Ukraine (NBU) anticipates that inflation will remain relatively stable in the coming months, although it may rise to approximately 9.4% in the latter half of the year. Factors contributing to this pressure include increased production costs, primarily due to rising energy prices.
The NBU also noted the impact of fuel price increases, which affect costs both directly and indirectly through secondary price effects.
Looking ahead, the NBU expects a gradual decrease in inflation starting in 2027, driven by stabilization in fuel prices, reduced external inflationary pressures, improved crop yields, and recovery in the energy sector. If these projections are realized, inflation could decline to 6.5% by the end of 2027, approaching the target level of 5% by 2028.
Additionally, Ukraine is taking steps to formalize its rental housing market by reducing the tax burden. The Verkhovna Rada has supported a bill aimed at legalizing landlords’ income and creating more transparent conditions in the real estate market.
Ukraine's inflation rate showed signs of slowing in May 2026, with a monthly increase of 0.9% and an annual rate of 8.2%. The National Bank of Ukraine projects further stabilization, with potential declines in inflation starting in 2027.