Ukraine’s annual consumer inflation rate decelerated to 7.2% year-over-year in June (meaning the rate of price increases slowed down), while core inflation rose to 8.1%, showing the war in the Middle East continues to put strong pressure on prices in Ukraine. Monthly inflation shows a strong deceleration: consumer inflation decreased from 0.9% in May to -0.1% in June, and core inflation, which excludes volatile components, also decreased from 0.7% in May to 0.5% in June.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official. The latest report published by the State Statistics Service on Thursday again showed uneven price dynamics, with headline inflation decelerating and core inflation slightly increasing for the third consecutive month. Logistics costs are not decelerating significantly after the spike caused by the war in the Middle East. The annual rise in fuel prices reached 33.4% year-over-year in June. Transportation services became even more expensive, accelerating to 23.1% in annual terms. Road passenger transport prices accelerated by 0.7% for another consecutive month to 24.1%, while railway passenger transport fell to 12.9%. The top 5 winners in monthly inflation acceleration are, surprisingly, not food. Water supply led all price increases in June, jumping 15.3% against May, followed by sewerage at 14.6% – both the result of tariff revisions rather than market dynamics. Rail passenger transport came third with a 3.4% rise, ahead of garbage collection at 3.0%.