Foto: Eugene Kozlovsky /

For the first time since 2018, the National Bank of Ukraine has reported inflation rates over 10 percent.

The annual inflation rate in Ukraine has grown to 10.2 percent in July, the National Bank of Ukraine (NBU) reported. It is the first time since 2018 that the inflation rate has went over 10 percent.

“Solid consumer demand, coupled with increase in production costs (in particular raw materials, energy, and wages), further accelerated the growth in prices for processed foods (to 12.3% yoy),” the report states. “More specifically, prices for pasta and meat, confectionery, and dairy products continued to grow. The price increase was somewhat curbed by the weaker growth of sunflower oil price in annual terms. However, this has not yet affected the prices of sunflower-oil-based products (margarine and mayonnaise), which kept growing at a faster pace.”

The National Bank of Ukraine now expects inflation to hover above 10 percent for the remainder of Q3, but already in 2022 they expect it to be back at the target rate of 5 percent. NBU has previously increased the policy interest rate from 7.5 percent to 8 percent to hinder inflation.