The actual rate of price growth was lower than the trajectory of the National Bank's forecast published in the January 2023 Inflation Report, due to higher-than-expected supply of food and fuel, as well as a better energy situation.
This is stated in the message of the NBU, Ukrainian News Agency reports.
Inflation was also restrained by the improvement of inflationary expectations and a favorable situation in the cash segment of the foreign exchange market, including thanks to the measures taken by the NBU.
These factors offset the effects of higher business costs incurred, in particular, to ensure business continuity during power outages.
The increase in the price of processed food products slowed down significantly (to 27.8% y/y) primarily due to the stabilization of the energy situation and the reduction of business costs.
Thus, the prices of bread and flour products, soft drinks, and canned goods grew at a lower rate.
Given the better situation in the energy sector and the decrease in export prices, the cost of dairy products and sunflowerseed oil grew more slowly.
The strengthening of the hryvnia in the cash segment of the foreign exchange market slowed down the price increase of imported products.
The growth of prices for non-food products practically remained at the level of the previous month (22.2% y/y).
The increase in the prices of these goods was restrained by the improvement of inflation expectations, including due to the favorable situation in the cash segment of the foreign exchange market, as well as weak and unevenly distributed consumer demand by goods and regions.
Prices for certain personal care products, electronics, pharmaceutical products, furniture and cars grew more slowly.
In contrast, prices for household goods, clothing and footwear accelerated, reflecting increased business spending in previous months to ensure energy autonomy.
The rate of growth of the cost of services also remained almost unchanged (15.6% y/y).
Tourist services, catering services, hotels, and cinemas rose in price more slowly, which can be explained both by weaker demand and by an improvement in the energy supply situation.
On the other hand, the cost of medical, insurance, veterinary, telecommunication services grew at a higher rate - under the influence of increased costs.
The increase in the price of power engineers and plumbers services also accelerated due to the continued high demand due to the effects of power outages.
The prices of flour and cereals increased at a lower rate, considering the better than expected harvests.
Growth in meat prices has slowed due to lower feed prices and weak demand.
Lower import prices restrained the increase in the price of citrus fruits.
The de-occupation of part of the Kherson Region last year and the subsequent adjustment of supplies to the region also restrained the increase in the cost of raw food products.
At the same time, prices for vegetables, in particular onions, carrots and greenhouse vegetables, grew at a higher rate due to a reduction in supply due to a low harvest.
The latter became more expensive also in view of the increase in business costs in the previous months due to the shortage of electricity, as well as the consequences of the earthquake in Turkey.
In addition, the price of eggs accelerated.
In order to minimize risks and ensure a steady decrease in inflation, the National Bank will continue to keep the discount rate at 25% and take additional measures to increase the attractiveness of hryvnia assets and maintain exchange rate stability.
As Ukrainian News Agency earlier reported, in February 2023, consumer prices rose by 0.7%.
In January-February 2023, inflation was 1.5%.
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