Over the past three years, the consumer price index has increased by 144.2% and economists expect this trend to continue.
During the full-scale war in Ukraine, according to statistics, prices for some products have almost doubled.
Radio Liberty writes about this.
It is reported that eggs cost 80 hryvnia per dozen, butter – 100-120 hryvnia, fermented milk cottage cheese – 85 hryvnia per 350 g. Prices for services, medicines and transport have also increased. Inflation has been gaining momentum for three years, and this year it has increased by 10%.
Experts Oleg Pendzin and Dmytro Boyarchuk attribute two factors to the main reasons for the rise in food prices: crop failure and the destruction of Ukraine's energy system. Pendzin notes that 30% fewer potatoes were harvested this year, and the price of eggs has increased due to the rise in the price of feed, the main component of which is corn. Boyarchuk adds that due to power outages and the use of generators, businesses are factoring these costs into their prices.
During the three years of full-scale war, the general consumer price index rose by 144.2%, which means an increase of 44.2%. Food and non-alcoholic beverages rose in price by 50.8%, transport by 57.1%, and education by 38.4%. Fruits rose in price the most – by 109.8%, and oils (except olive oil) the least – by 6.7%.
As for the future, experts believe that Ukraine is moving along a pessimistic scenario, although Pendzin notes that the economy is still in balance thanks to social payments and defense funding. It is expected that by the end of winter, prices may continue to rise due to the use of generators, and the stabilization of the economy will depend on the war situation and assistance from international partners.
Economist Dmytro Boyarchuk also notes that the authorities should begin reforms and simplify taxation for businesses in 2022 to prevent economic problems. He believes that the greatest risk is the lack of guarantees of long-term financing, since international infusions may end as early as 2025.
It is difficult to make exact forecasts for next year, but future development will depend on the situation and support from partners.
Recall that we previously wrote that Ukrainians should expect further increases in food prices due to a number of factors affecting pricing. Prices for vegetables, bread and other products have already increased significantly, which affects the financial situation of citizens.
In addition, expert Oleg Popenko stated that in 2025 we should expect an increase in utility tariffs. This is confirmed by the fact that the memorandum between Ukraine and the IMF clearly states the need for such changes.