The National Bank of Ukraine reported that annual inflation accelerated to 11.0% in October 2026 as higher fuel prices and damage to logistics infrastructure increased costs across food and nonfood products. Prices rose 1.8% over the month. Headline and core inflation were close to the bank’s October forecast, with price pressures expected to intensify through early 2027.
Fuel inflation reached 53.9%, reflecting higher global prices, import constraints and stronger demand for diesel to power generators. Core inflation rose to 9.7% as pressures spread across processed food, nonfood goods and services. Processed food inflation accelerated to 11.1%, partly because power disruptions forced producers to switch to diesel generators and higher logistics costs raised input prices. Damage to warehouses and increased distribution and energy costs also pushed up medicine prices. Services inflation reached 14.6%, driven partly by higher mobile communication tariffs, while housing rents continued to rise amid internal migration.
Higher fuel costs and damage to production and logistics infrastructure are expected to keep raising business costs through direct and second-round effects. Anticipated fiscal stimulus toward the end of 2026 will add to inflationary pressure. Inflation is subsequently expected to slow as the fuel price shock dissipates and wage pressures ease amid weak economic activity, with monetary policy measures also contributing to the decline.