According to the State Statistics Service, consumer prices in Ukraine fell by 0.1% in June 2026 compared to May, and annual inflation slowed to 7.2%. Core inflation—an indicator that the National Bank considers a key benchmark when making decisions on the discount rate—rose to 8.1%, the highest level since the beginning of the year.
According to the State Statistics Service, year-over-year inflation has been declining for the second consecutive month: 8.6% in April, 8.2% in May, and 7.2% in June. This decline was driven primarily by food prices: eggs fell by 27.8% over the month, vegetables by 3.7%, fruits by 1.3%, and sugar by 0.8%. Clothing and footwear prices fell by a combined 2.3%.
Core inflation, which excludes one-off price shocks, has been rising steadily since the beginning of the year: 7.0% in January, 7.6% in April, 7.9% in May, and 8.1% in June. It rose another 0.5% over the month.
What’s happening with utility and transportation prices
Water supply rates rose by 15.3% over the month, and wastewater disposal rates by 14.6%. Prices increased for sunflower oil (+1.7%), fish (+1.6%), pasta (+1.5%), and bread (+1.0%). Transportation costs rose by 0.2% due to higher fares for rail (+3.4%) and road passenger transport (+1.2%), while fuel and lubricants fell in price by 1.6%.
Why Core Inflation Is More Important for Banks Than the Overall Inflation Rate
“The data for June show that core price pressures remain high, and banks should take this into account in their plans for the second half of the year. We will continue to analyze these trends alongside future releases from the State Statistics Service,” said Andriy Dubas, president of the Association of Ukrainian Banks (AUB).
When reviewing loan and deposit rates for the second half of the year, it is advisable to focus on the trend in core inflation, which stood at 8.1% year-over-year in June. The next release from the State Statistics Service is expected in August 2026.
The data excludes territories temporarily occupied by the Russian Federation and areas where hostilities are taking place. Source: State Statistics Service of Ukraine.
