The National Bank projected changes in food prices in 2025.

The National Bank of Ukraine anticipates an improvement in the food price situation this year, according to NBU data.

Ukraine continues to face rising food prices. This is happening due to a low harvest, deterioration in the quality of vegetables and fruits, as well as the rapid depletion of last year's stocks. In the second half of the year, prices rose more than the National Bank expected.

The precise trends in Ukraine's food market indicate a steady increase in prices for many food products, particularly meat, dairy products, and confectionery. Specifically, processed food prices have risen by 8.9% compared to last year, which is much higher than the National Bank of Ukraine's June forecast of 5.9% for June 2024.

Although the price of oil initially decreased, there has since been a rise in oilseed prices. Continuous price increases for meat also impact overall inflation. Food exports affect the domestic market and prices.

The National Bank believes that the rise in wholesale prices for products will soon impact the final cost for consumers.

Thus, food prices in the market are expected to remain high for the foreseeable future. In particular, price increases for meat, dairy products, and flour-based products are possible.

The National Bank forecasts an improvement in the inflation situation by spring 2025, when a new harvest emerges that will reduce the increases in raw material prices. By the end of 2025, inflation on these goods may decrease to 6%.

A further decrease in inflation is expected due to increased production, improved logistics, and falling global food prices. By 2026, the level of food inflation may decrease to 3%.

Earlier, it was reported why food producers are building a 'reserve' into prices.