Ukraine's inflation rate hit 40.7 percent in the first half of this year driven by higher utility prices, the State Statistics Service said Monday.

From January through June, utility costs in the East European country went up by 121.7 percent, while prices of food and clothing soared 36.5 percent and 18.1 percent, respectively, the statistical agency said in a report.

According to the document, the monthly inflation in Ukraine decelerated to 0.4 percent last month from 2.2 percent in May due to the seasonal decline in prices and stabilization of the local currency.

Ukrainian government estimated that inflation rate in the country will stand at 42.8 percent for this year, compared with 24. 9 percent last year.