Inflation in Ukraine hit a two-year high: the National Bank provided an unexpected forecast.

Inflation in Ukraine has reached record levels in the last two years, starting to rise in May. According to the State Statistics Service, this month it reached 15.9%, the highest figure for this period. Prices for food have increased the most - by 22.1% over the year, especially for eggs, vegetables, oil, and fruits.

The NBU believes that such a rapid rise in food prices occurred due to poor weather last spring and active food exports.

Ukrainian families are now spending more on food than Polish ones, even in a situation where some products are already more expensive in Ukraine than in the neighboring country. Currently, it is hoped that the peak of inflation has passed, and by the end of the year the figure will drop to 8.7%. This is related to the decrease in energy prices, oil, and tight monetary policy. It is also anticipated that due to the low base of last year, prices will rise in June, but overall inflation will decrease.

Hopes for a reduction in inflation in the summer are linked to improvements in the energy sector, falling oil prices, tight monetary policy, and a successful new harvest. Currently, there are no plans to raise electricity tariffs, and gas prices remain stable. Future forecasts regarding the harvest and the economy are varied and require careful monitoring.

Inflation in Ukraine has reached critically high levels, especially in the food market. Currently, the authorities hope for a decrease in prices due to improvements in various sectors, but at the same time, they need to closely monitor the situation and identify potential risks for the future economy of the country.