New report reveals why grocery bills are soaring — here's what we know

Grocery bills are climbing fast in Ukraine, and a new report from the National Bank of Ukraine sheds light on what's behind the rise.

What's happening?

According to the Ukrainian News Agency, the NBU stated that consumer prices in May 2025 were up 15.9% compared to May 2024. Much of that increase is being driven by higher costs for raw food staples such as pork, chicken, eggs, milk, and fruit, which together rose by more than 26%.

The spike is largely due to two factors: bad spring weather that led to poor harvests and ongoing strong demand for Ukrainian food exports. 

Cold snaps and frosts hurt crop yields, while rising production costs and shrinking herds of pigs and cattle pushed up meat and dairy prices. At the same time, export demand and high international prices have limited the domestic supply.

This impact directly translates to steeper grocery costs for Ukrainian families. Other regulated goods have also gotten more expensive, rising nearly 20% in the last year. Fuel costs, meanwhile, increased only slightly, thanks to cheaper imports and a greater domestic supply.

Why is this inflation concerning?

The rising cost of groceries isn't unique to Ukraine. As the Earth overheats and weather patterns grow more erratic, crop failures and supply chain disruptions are becoming more common.

In Bulgaria, for example, grocery prices rose almost 11% in the past year, with essentials such as milk and cheese especially hard-hit. In the United States, grocery prices jumped 1.8% year over year as of December, while overall food costs ticked up 0.3%.

Meanwhile, a joint report from World Weather Attribution and Climate Central found that 2024 brought an average of 41 extra days of dangerously hot temperatures for millions of people around the world. These conditions make it harder to grow and keep food fresh.

What's being done about food inflation?

According to the NBU, inflation is expected to ease in the coming months as new harvests roll in and global pressures begin to soften. In particular, recent monetary policy changes have been brought forth to help relieve some of this financial strain.

The Ukrainian Parliament passed Bill No. 1214-8, a piece of legislation that will support out-of-work farmers with additional income during these disruptive times. However, the bill still needs the Ukrainian president's signature to come to fruition.

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Rising food costs remain a major challenge for families worldwide. Luckily, planning ahead can help. Learning how to shop smarter at the grocery store and using tactics like meal planning to cut back on food waste can make it easier to stretch your dollar.

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