Food prices in Ukraine continue to grow on New Year's Eve .
According to the State Statistics Service, compared to the previous year, in particular, the cost of animal products, vegetables & # 8220; borsch set & # 8221; and alcohol . Apples and potatoes were almost the only products that fell in price over the year.
Lard rose in price by 23.6%, chicken fillet by 29.4%, eggs by 29.2%, milk – by 10.1%. Also, sugar and vegetable oil have risen in price & # 8212; by 43.1% and 55.4%, respectively.
The cost of the New Year's table has increased in price for the year by 8.1%. On average, a New Year's feast for four people this year will cost UAH 1,844.74 . Such data were provided by the National Research Center of the Institute of Agrarian Economics.
Why food prices are growing, is it worth expecting such a trend next year and how to stop inflation, ICTV Facts found out together with experts.
Food prices in Ukraine: what are the reasons for the growth
Member of the Economic Discussion Club Oleg Pendzin explained in the commentary that food prices in Ukraine are growing for objective reasons. First, it is related to the dynamics of world prices . For example, the same vegetable oil on the world market also rose in price by 50%.
Recently, the Food and Agriculture Organization of the United Nations (FAO) published a report on the food price index.
According to it, in November this year, the food price index was 134.4 points. This is the highest level since June 2011 . Food prices in November 2021 turned out to be 27.3% higher than last year.
As Oleg Pendzin noted, there are other reasons why food prices are growing. In particular, this happens due to energy costs, which have grown three and a half times . This is also due to the increase in the level of the minimum wage in Ukraine. Since December 1, it has been increased by UAH 500.
Financial analyst Oleksiy Luponosov named three reasons for the rise in prices in Ukraine. Firstly, this is happening because now entrepreneurs in Ukraine can earn only on food and medicine. All because of the low purchasing power of Ukrainians.
& # 8212; Consumer demand among the population is very small. People spend money on utilities, on medicines and food.
We cannot make money on something else now, as in Europe, therefore this industry is the most profitable today, this is where capital and investors go.
There you can benefit today because people will eat and heal. They have no money for anything else.
The second reason is the rise in world prices . The expert gives an example that even in the USA, where the dollar is the payment unit, the prices of food are growing.
– Even there we observe inflation at the level of 10-15% in food products. This automatically leads to the fact that food products in Ukraine begin to grow. The multiplier is triggered, making this inflation even higher.
The third reason for the increase in food prices is seasonal demand … Alexey Luponosov explains that on New Year's holidays, people buy delicacies that they did not allow themselves for a year and do it in advance. For example, caviar, raw smoked sausages and so on.
– These three factors have influenced the fact that today Ukraine is the leader among European countries in terms of food prices, – the expert summed up.
How to stop the rise in food prices
According to Aleksey Luponosov, in order to resolve the situation with prices, the Ukrainian authorities should reduce the value added tax (VAT) by products and medicines, at least for end consumers.
& # 8212; Prices will never go down on their own. What should the authorities do today to at least bring this effect to zero? It is necessary to reduce VAT on foodstuffs to 0.
In many developed countries of the West, this is the case. That is, products and medicines have VAT 0, since they are bought by people – the end consumer.
As noted by the financial analyst, global goods entering Ukraine due to VAT immediately become 20% more expensive … Therefore, for end consumers in supermarkets and pharmacies, this tax should be zero.
What inflation will be next year?
Both experts give disappointing forecasts for price increases for the next year. In their opinion, inflation will definitely exceed 6.2% – this is the level provided for in the State Budget of Ukraine for 2022.
& # 8212; Here, too, do not expect another next year. 6% is included in the budget. I do not believe in 6%, I think that the figure will be two-digit, & # 8212; Oleg Pendzin emphasized.
The economist also noted that prices will rise in December, as demand increases before the New Year holidays.
& # 8212; Next year, unfortunately, the crisis will only get worse, the purchasing power of Ukrainians will be even lower. Since it will be possible to earn only on medicines and products, prices will rise, & # 8212; said financial analyst Oleksiy Luponosov.
The cost of the New Year's table is 2022
According to experts, this year's New Year's feast will cost Ukrainians an average of UAH 1,844.74 for four people .
To deduct the cost, we took traditional New Year's dishes: salads, meat, fish, vegetables, fruits, drinks, confectionery and bakery products.
In particular, 3 kg of salad Olivier will cost 198.54 UAH, and for 1.5 kg of salad herring under a fur coat you will have to pay 121.57 UAH.
Read more about the cost of the New Year's table in the material .
