*Ukrainian Inflation Slows from Highest Level in 2 Years Due to Base Effects*
The annual inflation rate in Ukraine fell to 14.3% in June 2025 from a two-year high of 15.9% in the previous month, marking the first slowdown in consumer prices since March 2024. Inflation decelerated sharply for housing and utilities (2.4% vs 20.1% in May), as the base year began to incorporate the impact of Russian attacks on Ukraine's power grid and energy infrastructure, which stabilized electricity prices year-on-year (vs 63.6%). This offset the impact of rising inflation in other key sectors. Prices increased for transportation (6.2% vs 5.8%) and non-alcoholic food and beverages (23.2% vs 22.1%), primarily due to last year's smaller harvest and cold spring weather delaying fresh produce. From the previous month, consumer prices rose by 0.8%.