Producer prices increased by 45.2%: how this may affect the cost of goods and services
Producer prices for industrial products in Ukraine increased by 1.2% in May 2026 compared to April, and by 45.2% year-on-year. This was reported by the Verkhovna Rada Committee on Finance, Tax and Customs Policy, citing data from the State Statistics Service.
The committee noted that high industrial inflation indicates rising production costs. This subsequently affects consumer prices, as increasing business expenses, including electricity and logistics, are gradually incorporated into the cost of goods and services.
The committee emphasized that in May consumer prices rose by 0.9% compared to the previous month and by 8.2% year-on-year. At the same time, businesses absorb part of the additional costs, which reduces their profitability and limits their ability to invest, expand production, and accelerate industrial recovery.
The committee also pointed out that industrial price increases are uneven. The largest rise was recorded in the energy sector: electricity supply nearly doubled over the year. In the manufacturing industry, prices increased by 13.4%. Significant price increases were also observed in coke and petroleum products, chemical products, and electrical equipment production.
At the same time, according to the forecast for Ukraine's economic and social development for 2027–2029, the rate of producer price growth is expected to gradually slow down. The baseline scenario anticipates a decrease in this indicator from 110.3% in 2027 to 107.4% in 2029.
The committee stated that achieving these targets requires implementing a set of measures to support business. This includes expanding available financing programs for producers, investing in energy and infrastructure, developing the manufacturing industry, supporting the defense-industrial complex as a sector with high export potential, and attracting private capital to recovery projects.
The committee also noted that the National Development Institution should play a special role in this, and the implementation of such mechanisms should not be delayed, as a strong Ukrainian business will form the foundation of the country's post-war reconstruction.
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