No reduction in prices is to be expected.
Low yields, worse quality of vegetables and fruits, and rapid depletion of stocks last year are stimulating price growth.
This is stated in the NBU report.
Current trends in the Ukrainian food market indicate a steady increase in prices for a range of goods, including meat, dairy products and confectionery.
In recent months, the cost of processed food products has increased by 8.9% year-on-year, significantly exceeding the NBU forecast of 5.9% in June 2024.
“Although the cost of butter initially decreased, then there was an increase in prices for oilseeds. The long-term rise in meat prices also has a significant impact on overall inflation. The increase in food exports puts pressure on the domestic market and prices,” the report says.
The NBU believes that the increase in the cost of production has led to an increase in wholesale prices, which will likely soon affect the final cost for the consumer.
Inflation in the food market will remain high in the near future. In particular, the rise in prices for meat, dairy products and flour products. An improvement in the inflation situation is expected by the spring of 2025, when the new harvest appears, slowing the growth in prices for raw products.
According to estimates, by the end of 2025, inflation for these goods may decrease to about 6%.
Further inflation is expected to decrease due to increased production, improved logistics and lower global food prices. Under such conditions, the level of food inflation may decrease to 3% by 2026.
Earlier it was reported that food prices would go up in Ukraine in November. Read more about this in the news.