It became known that in In August 2024, wholesale prices of industrial producers in Ukraine showed a significant increase, indicating large-scale changes in the country's economy.
This was reported by URA-Inform with reference to the official website of the State Statistics Service.
According to the State Statistics Service of Ukraine, prices increased by 31.2% year-on-year, with domestic prices increasing by 35.0% and export prices by 6.7%. These figures highlight that, despite external challenges, Ukrainian producers continue to adapt to difficult conditions both within the country and abroad.
Food industry sector under pressure
In the production of food, beverages and tobacco products, prices increased by 10.5%, reflecting increased costs for raw materials and logistics. Dairy products increased in price especially significantly, by 17.8%, of which 16.7% was the increase in prices on the domestic market. Meat production also showed a significant increase of 16.4%, which was fully reflected in prices within the country. In contrast, prices for sugar production fell by 10.3%, due to both high supply and reduced demand on international markets.
Impact on consumer prices: delayed effect
The increase in wholesale producer prices in Ukraine will inevitably be reflected in consumer prices, but this process takes time. Consumers will feel the increase in the cost of products on store shelves only after several months, when changes at the producer level are fully integrated into retail supply chains. This is especially true for categories such as dairy and meat products, which account for a significant share of Ukrainian household expenses.
Global food price dynamics
The global market in August 2024 saw a general decline in food prices, which contrasts with the situation in Ukraine. According to the Food and Agriculture Organization of the United Nations (FAO), the food price index fell by 1.1% compared to the same period last year and by 24.7% below the peak level recorded in March 2022 after the start of Russia's full-scale invasion of Ukraine.
The decline in global prices for sugar, meat and grain crops was more significant than the rise in prices for vegetable oils and dairy products. These changes reflect not only fluctuations in world markets, but also internal processes of resource redistribution and changes in production chains.
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