Ukraine’s Inflation Reaches 8.1% as Fuel and Water Costs Rise

Ukraine's annual consumer inflation reached 8.1% in August of 2026, aligning with core inflation, as fuel and water costs increased, despite a seasonal drop in food prices. The National Bank of Ukraine (NBU) aims for inflation to stay below 5%, but both headline and core inflation surpassed this target in August. Food prices, notably vegetables, declined sharply due to the new harvest.

Meanwhile, fuel and transport costs rose, and higher tariffs contributed to higher water and sewerage bills. The conflict in the Middle East increased fuel and logistics expenses, and labor shortages further pressured service prices. Russian attacks on Ukrainian businesses added to repair and distribution costs, which could add 0.4–0.6 percentage points to inflation by the end of 2026, according to NBU Deputy Governor Volodymyr Lepushynskyi.

The State Statistics Service reported these figures on September 9. Fuel prices surged 38.7% year-on-year in August, up from 28% in July and 33% in June. Transport services costs climbed 35.9% annually, while road passenger transport prices rose 39.1% and rail fares increased 16%. Water and sewerage tariffs surged 16.8% and 16.7% respectively in August, with cumulative increases of 77.6% and 73.6% over the past year.

In contrast, food prices fell 1.3% in August, marking the steepest monthly decline this year. Egg prices rose 4% but remained 24.1% lower than a year ago, while meat and meat products increased by 0.9%, reversing July's decline. Fish and fish products saw the largest annual increase among food categories at 22.7%. Housing and utility costs rose 1.3%, with garbage collection fees jumping 18.5% year-on-year.

Alcohol and tobacco prices grew 1.5% and 2.1% respectively. Annual service-price inflation slowed to 13.4%, with taxi and moving services becoming more expensive due to high fuel costs. Meanwhile, healthcare costs rose 0.7%, education costs increased 14.6% year-on-year, and the NBU warned that inflation could remain above the 5% target for an extended period.