The actual rate of price growth was somewhat lower than the trajectory of the National Bank's forecast.
This is stated in the message of the National Bank of Ukraine (NBU), Ukrainian News Agency reports.
In April 2023, consumer inflation in annual terms (y/y) continued to slow down to 17.9% from 21.3% in March.
In monthly terms, prices increased by 0.2%.
The actual pace of price growth was slightly lower than the trajectory of the National Bank's forecast published in the Inflation Report for April 2023, driven by a larger-than-expected supply of food and fuel.
Inflation was restrained by the strengthening of the hryvnia on the cash foreign exchange market and the improvement of inflationary expectations.
The slowdown in inflation is also largely due to the base effect of last year, when inflation began to accelerate rapidly since the start of the full-scale invasion.
The increase in the price of processed food products slowed down significantly (to 19.2% y/y).
As in previous months, this is explained by the decrease in the growth rate of raw materials and fuel costs, the recovery of production and logistics chains, in particular against the background of a stable situation in the energy sector.
Thus, the slowdown in the growth of prices for bread and flour products, confectionery and sausage products, beverages and canned goods continued.
The decrease in world prices against the background of weak demand, as well as due to the uncertainty associated with the restriction of food transit through neighboring EU countries, led to a slowdown in the increase in the price of dairy products and sunflowerseed oil.
The improvement of exchange rate expectations against the background of the strengthening of the hryvnia cash rate contributed to a decrease in the rate of growth of prices for imported products.
Milk prices rose more slowly due to ample supply amid weak demand and uncertainty surrounding possible transit and export restrictions.
Cereal and flour prices decreased year-on-year, while sugar prices slowed due to last year's harvests sufficient for domestic needs.
The decrease in import prices and the favorable situation on the foreign exchange market led to a sharp slowdown in the price of citrus fruits and bananas.
The growth of prices for greenhouse and imported vegetables slowed down, mainly due to the expansion of supply.
At the same time, the prices of vegetables of the borscht set rose at a higher rate: cabbage - due to the off-season supply of early varieties, and onions and carrots - due to the depletion of stocks last year.
Despite a seasonal increase in supply, particularly from households, which led to a significant decline in egg prices at the end of April, the annual rate of increase in egg prices accelerated, reflecting a low base of comparison last year.
The higher rate of increase in the price of meat can be explained by limited production possibilities and weak imports against the background of rising world prices.
Tobacco products rose in price more slowly, probably under pressure from illegal products.
The sharp slowdown in the growth of prices for alcoholic beverages is due to the effects of the base of comparison last year.
The increase in prices for transport services slowed down thanks to the stabilization of fuel prices.
The moratorium on raising tariffs for housing and utility services for the population further restrained administrative inflation.
The rate of increase in fuel prices continued to decrease - up to 24.2% y/y.
This is explained primarily by the presence of significant reserves formed in previous months at lower world oil prices.
As Ukrainian News Agency earlier reported, in April 2023, consumer prices rose by 0.2%.
In January-April 2023, inflation was 3.2%.
Compared to April 2022, consumer prices in April 2023 increased by 17.9%.
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