Analysts shared the sad numbers.
In Ukraine in 2017 vegetables increased in price by 60%, fruit – by 24%.
This was stated by analysts at Pro-Consulting.
“Summer of 2017, made an unpleasant surprise for Ukrainian economists, and the public. Traditionally at this time of falling prices for agricultural products, and the consumer basket of Ukrainians cheaper. This year, summer deflation in June-July did not happen, despite the fact that it was predicted and expected by the representatives of the national Bank. We can talk about that the increase in prices envisaged in the government budget of Ukraine for 2017 at the level of 8.1% will be significantly exceeded. Only at the end of July, the annual inflation rate approached 16%,” said analysts.
The company stated that the reason for this unusual price behavior of the economy in the summer the supply of steel products, some of which are instead cheaper, on the contrary – rose in price.
“For example, the price of meat goes up with the beginning of the year. African swine fever reduced the number of pig population in the country, and the world pork price hike contributed to the increase in imports, reducing the supply of meat in the domestic market. It influenced the other major types of meat – beef and chicken. Adverse weather had a negative impact on the yield of vegetables and fruits. In addition, due to improved methodology in the calculation to get the earlier, more expensive, gifts of fields and gardens. Therefore, the rise in prices since the beginning of the year, 60% for vegetables, 24% – fruits significantly spurred the overall inflation picture. From other goods and services it is worth noting the increase in the price of cigarettes by 26% and passenger traffic by 6.4%,” – said the expert.
According to analysts, the forecasts for autumn also do not give reason to hope for stabilization of prices of the consumer basket.
“One of the negative aspects is a high probability of devaluation of the hryvnia to the end of the year. Experts hope that the global trend of the weakening of the dollar, the hryvnia will be able to resist a strong fall and exchange rate pressure on prices is not very significant. However, the regional authorities till the end of the year will try to spend the money of local budgets, the accounts of which gathered a record high amount in the national currency. In addition, in October there will be the so-called modernization of pensions, so the population will have more money. All of these demand-boosting factors will contribute to the growth of internal prices, and, due to the large dependence of the Ukrainian economy on imports, the increase in demand for foreign currency and the depreciation of the hryvnia” – summed up in the company.
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