NBU expects further decline in inflation

Inflation in Ukraine has been declining since June 2025, in line with forecasts. National Bank of Ukraine (NBU) Governor Andriy Pyshnyy said this reflects the central bank’s targeted monetary policy.

“To curb inflation, we raised the key policy rate in March 2025 and kept it at 15.5%. As a result, savings in hryvnia remained attractive, which eased pressure on the exchange rate and prices,” Pyshnyy wrote in a column for Ukrinform.

He noted that household investments in term hryvnia deposits grew nearly 20% over the year, while investments in hryvnia-denominated government bonds rose 67%. Net household demand for foreign currency was almost half the level of 2024.

Pyshnyy added that the NBU expects inflation to keep falling. According to State Statistics Service data, inflation slowed to 8% in December 2025. “We expect this trend to persist. Based on our October forecast, inflation will fall to 6.6% in 2026 and reach the 5% target in 2027. These figures are close to the projections of most analysts,” he said.

As earlier reported by Ukrinform, consumer prices in December rose 0.2% from November and 8.0% year-on-year. Core inflation increased 0.1% month-on-month and 8.0% compared to December 2024.