Ukraine's consumer inflation rose to 7.7% in July 2026 compared with July 2025, and increased 0.3% compared with June, the State Statistics Service reported.
Food and non-alcoholic beverages fell 0.2% over the month. Egg prices dropped 6%, meat and meat products fell 0.6%, edible animal fats fell 0.6%, and vegetables fell 5.9%. Clothing prices fell 5.8%, footwear fell 3.5%, and fuel and lubricants fell 0.1%.
Utility costs surge
Water supply prices rose 31.9% in July, sewerage charges rose 29.8%, and waste removal costs rose 5.1%.
Annual inflation stood at 7.2% in June, though prices fell 0.1% compared with May. The National Bank of Ukraine had said price pressure would keep rising in the coming months. Under the bank's updated forecast, inflation is expected to accelerate from June's 7.2% to 10% by the end of 2026.
Central bank raises rate
Because of the accelerating inflation, the National Bank unexpectedly raised its key policy rate to 15.5%, a move that surprised observers.
The regulator forecasts inflation will begin to ease in 2027, falling to 6.9%, and reach its 5% target by the end of 2028. The bank said this would be supported by a gradual reduction in budget deficits, easing pressure on the labour market, an expected increase in harvests, and an improving energy situation as security risks decline. Monetary policy measures by the National Bank are also expected to contribute.
