According to the National Bank of Ukraine, inflation slowed to 8% in December 2025, with a further decrease anticipated to 7.5% by the end of 2026.
This information was presented in the NBU's inflation report for January.
The primary reason for the decline in inflation was an increase in crop yields and a decrease in labor market pressures. In September 2025, inflation was at 11.9%, but it dropped to 8% by December and continued to decline in January.
"However, extensive damage in the energy sector will maintain upward pressure on prices through both market and administrative mechanisms. Coupled with the effects of a low comparison base, this may lead to moderate inflation acceleration in the second half of the year.
Consequently, by the end of 2026, inflation is expected to decrease to 7.5%." – reports the NBU.
The NBU also expects inflation to slow to 6% in 2027 and to reach the target of 5% in the second half of 2028.
This forecast is linked to a reduction in energy deficits, decreased external price pressures, as well as improved crop yields and labor market conditions.
