The National Bank of Ukraine predicts inflation will reach approximately 7% by the end of 2025.

At the end of next year, the NBU expects inflation to be around 7% and aims to reach the target of 5% by 2026.

Deputy Head of the NBU, Serhiy Nikolaychuk, stated this in an interview.

According to him, these forecasts are primarily based on expectations of improved harvest conditions for agricultural crops.

“We do not believe that we will have adverse weather conditions for the second consecutive year. Additionally, we expect that the cost-push factors affecting prices, linked to labor costs and enterprises' expenses for ensuring energy efficiency, will decrease. Of course, we also factor in the stability of the currency market and monetary policy measures aimed at achieving our inflation targets,” he noted.

Furthermore, Nikolaychuk shared current inflation indicators based on the results of the past 11 months. In particular, in November, inflation accelerated to 11.2% over the last 12 months.

“This acceleration in the second half of the year was anticipated primarily due to expectations of rising food prices resulting from less favorable weather conditions. The harvest of many agricultural crops this year was lower than last year. At the same time, the consequences turned out to be even greater than we expected,” he said.

He mentioned that this was also compounded by factors related to increased production costs, driven by sharp wage growth and additional expenses incurred by enterprises to maintain their operations amid energy terror from the Russian Federation.

Background. Earlier, Mind reported that high inflation in Ukraine is expected to persist until mid-2025. Prices will continue to rise at rates exceeding 10% for at least another six months.