Russian air strikes are pushing up inflation in Ukraine, according to the country's central bank. Deputy governor Volodymyr Lepushchynskyj said on Tuesday in a contribution to Interfax-Ukraine that higher business costs and logistics disruptions alone would add 0.4 to 0.6 percentage points to the inflation rate this year.
The central bank already expects the annual rate to be around 10% by the end of 2026. Lepushchynskyj said the escalation has macroeconomic consequences, with attacks on companies, warehouses, logistics centres and energy infrastructure, together with the de facto blockade of Black Sea ports, carrying a visible economic cost.
Inflation had already accelerated to 7.7% in July from 7.2% in June, and preliminary estimates indicated the trend continued in August. He warned that if attacks continue or intensify, economic costs would rise.
Ukraine's economy is in a fragile state in the fifth year of the war. The International Monetary Fund expects gross domestic product growth of only 1.0% to 1.6% in 2026. Pressure on the state budget is increasing as the trade deficit widens because exports are falling due to logistics problems and the Black Sea blockade. In July, exports were about $2.9 billion against imports of $8.8 billion.
