The acceleration in price growth is mainly due to state-regulated tariffs and transport services. Water prices rose 31.9 percent year-on-year, and transport services costs increased 28.9 percent. Fuel prices also continued to climb, though slightly slower than before: in July they were 28 percent higher than a year earlier.
Wolodymyr Lepuschynskyj, deputy governor of the National Bank of Ukraine, had already warned of a reversal in the inflation trend based on preliminary July data. He sees the risk that inflation will remain above the central bank’s 5 percent target for an extended period. Monthly core inflation, which excludes volatile components, slowed to 0.3 percent in July.
According to the statistics service, several factors are behind persistently high core inflation: the consequences of the war in the Middle East, devastating Russian missile attacks, and the halt of the Black Sea corridor, which also results from Russian attacks on ships. These circumstances have made price increases more stubborn and longer-lasting.
Source: www.kyivpost.com
