KYIV (Reuters) -Ukraine’s monthly consumer inflation slowed to 0.7% in November from 2.5% the previous month, the State Statistics Committee said on Friday.
It said consumer inflation slowed to 26.5% in November year-on-year.
Heavy damage to Ukraine’s energy infrastructure from waves of Russian air strikes was a key shock for the economy in October and November, the economy ministry said.
Businesses were forced reduce working hours and faced severe logistical challenges because of the electricity deficit and long blackouts, it said.
Ukraine’s economy has been severely hit by Russia’s Feb. 24 invasion and more than nine months of war. Moscow has conducted a series of missile attacks in recent weeks, striking critical infrastructure across the country.
“Now the situation with food prices is gradually stabilising. Government actions to control utility tariffs for residents have also contributed to curbing inflation,” Economy Minister Yuliya Svyrydenko said in a statement.
Svyrydenko expected 2022 annual inflation to stay below 30%, as previously forecast by the government.
The statistics committee also said gross domestic product fell by 30.8% in the third quarter of 2022 after a 37.2% slump in the second quarter of the year.
The economy ministry had previously said it had to cut its economic outlook for the entire year, with GDP expected to fall by 33.2%. The International Monetary Fund expects Ukraine’s economy to fall by about 35% this year.
(Reporting by Olena Harmash, Editing by Timothy Heritage)