In June 2025, consumer inflation in Ukraine began to decline after reaching its highest levels in May. According to the latest data from the National Bank of Ukraine, annual inflation in June fell below 15%, made possible by a decrease in administrative inflation.
This is reported by Business • Media
Inflation Dynamics and Impact on the Economy
In May 2025, inflation accelerated to 15.9% year-on-year, primarily due to a significant increase in prices for raw food products. However, by June, the overall inflation rate began to decrease. Experts from the National Bank forecast further easing of inflationary pressure in the second half of the year, provided there is stable energy supply and no new food shocks.
Inflation expectations among businesses and the public have “somewhat worsened,” but are still noticeably lower than the actual rate of price growth.
Impact of Inflation on Ukrainian Wages
Despite a labor shortage that supports high nominal wage growth—over 20% in 2025—inflation significantly affects the purchasing power of citizens. Due to increased inflationary pressure, real wages for Ukrainians are growing more slowly. In the first quarter of 2025, real incomes increased by only 9.2% year-on-year, which is considerably less compared to nominal growth.
Thus, despite the positive dynamics in the labor market, inflation “eats up” more than half of the wage growth for Ukrainians, reducing their actual purchasing power.