Inflation is a sustained rise in the general level of prices, so that money buys fewer goods and services than before.
In plain words
Inflation is measured by the consumer price index (CPI), which the State Statistics Service calculates. If prices rise 10% over a year, a basket of goods that cost UAH 100 now costs about UAH 110. For savings it is a hidden tax: if the interest on a deposit is lower than inflation, the real purchasing power of the money falls. The National Bank of Ukraine has set its inflation target at 5% and aims its monetary policy at reaching it (according to the NBU website, checked on 14 October 2026).
Sources
- National Bank of Ukraine: about monetary policy (inflation target) — “About monetary policy” page. Checked 14.10.2026.
- State Statistics Service of Ukraine: changes in consumer goods and services prices (tariffs) — price-change dataset. Checked 14.10.2026.
Example. Prices rose 10% over the year and your deposit earned 8%: formally you earned something, but you can buy a little less with that money than last year (108 against 110, illustrative numbers).