Food prices drive inflation in Ukraine up to 9.7% y/y in October
Recasts with more details, adds context
KYIV, Nov 8 (Reuters) -An increase in food prices and rising business costs pushed inflation in Ukraine up to 9.7% year-on-year in October from 8.6% in September, the statistics service said on Friday.
Monthly consumer prices grew by 1.8% in October compared with 1.5% in the previous month, it said.
Consumer inflation has been growing at a faster pace than initially expected by the government and analysts so far this year because of a lower harvest, an electricity deficit and rising business costs.
Statistics data showed that food prices rose by 10.9% year-on-year in October, with prices for vegetables up by over 62% and fruit prices growing by 23.9%.
The central bank expected the price pressure to remain strong in the coming months, peaking at the start of the next year and inflation starting to slow in spring 2025.
As Russia's war in Ukraine approaches the 1,000-day mark, Ukrainian businesses struggle with increasing business costs due to electricity deficit and staff shortages.
Russian forces have intensified their attacks on the Ukrainian energy sector since March, knocking out about half of available generation capacity. Ukraine has to rely on more expensive imported electricity to cover the demand.
The war is also draining Ukraine's labour force, with millions abroad and tens of thousands Ukrainian men mobilized into the army.
Reporting by Olena Harmash, Editing by Timothy Heritage
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