Ukraine’s annual inflation falls to 7.4% in January

In January 2026, consumer prices in Ukraine rose by 0.7% compared to December 2025, and by 7.4% compared to January 2025, according to the State Statistics Service.

For comparison, annual inflation in December was 8.0%. Overall, inflation has been slowing for eight consecutive months after peaking at 15.9% in May 2025.

Core inflation, which excludes short-term fluctuations caused by seasonal or administrative factors, increased by 0.4% in January and by 7.0% year-on-year.

Among major items, vegetable prices rose the most in January (+14.7%), while egg prices fell (-7.7%).

The National Bank of Ukraine (NBU) expects inflation to remain roughly at the current level by the end of the year.

Inflation is projected to ease in the coming months, mainly due to the effects of a strong 2025 harvest.

However, ongoing disruptions in the energy sector are likely to continue putting upward pressure on prices through both market and administrative channels. Combined with a low comparison base, these factors may cause moderate inflationary acceleration in the second half of 2026. Overall, the NBU expects inflation to moderate to around 7.5% by the end of the year.