**Ukraine’s Inflation Surpasses Forecasts**
The inflation rate in Ukraine has accelerated to 12% in 2024, exceeding the country’s National Bank forecast. This announcement was made by Ukraine’s statistics service Derzhstat on January 10.
**Harsh Economic Conditions**
Since Russia invaded Ukraine in 2022, the economy has faced harsh conditions. Inflation skyrocketed from 10.0% in 2021 to 26.6% in 2022. Despite efforts to stabilize the situation, the country’s GDP fell by 29.1% in 2022.
**Inflation Drivers**
The main drivers of inflation growth in 2024 were the increasing cost of groceries and electricity costs. Food prices grew 1.8% in December, down from a yearly high of 3.9% in November. The price of food and drinks increased by 14.1% year over year from December 2023.
**Electricity Costs**
Amid Russian attacks on energy infrastructure, electricity costs also increased by a massive 63.6% year over year in December. This made it difficult for Ukrainians to afford essential services.
**Economic Growth**
Despite high inflation, Ukraine’s economy has managed to adapt to the realities of the full-scale war. The GDP is expected to grow by over 4% in 2024 and 2025. Russia’s invasion caused significant economic damage, but Western allies have provided financial support, including military and humanitarian aid.
**Security Guarantees**
President Volodymyr Zelensky hopes to obtain security guarantees from the West this year and end the war soon. He believes that everything should be done to achieve this goal.
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