Cigarettes will go up faster than alcohol.
The cost of tobacco products will grow rapidly in connection with the further increase in excise duty rates. The forecast contained in Inflation report National Bank of Ukraine for April.
According to the forecast, in 2019 the growth of prices on tobacco products is expected to reach 19%, the rise in price of alcoholic production is projected to be 6-9% per year in 2019-2021.
As noted in the report that in March 2019 the growth rate of prices of alcoholic beverages remained virtually unchanged (9,9% y/y).
Thus, despite the increase in excise duties, growth of prices of tobacco products slowed down to 24.0% y/y. In particular, it may be explained by the fact that indexing specific excise tax rates on tobacco products (20%) was less than the growth rate of prices of these commodities, the report says.
Recall, according to the State statistics service, consumer prices in Ukraine in 2018 (for 2017) rose by 9.8%. Cigarette prices for the year increased by 23-27%, vodka for the year rose by 11%.
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