Food prices in Ukraine began to grow at a record pace, Russian buckwheat is passed off as Kazakh
Price growth in Ukraine has reached record highs. According to the State Statistics Service, in July 2022, food prices rose by 28,9% compared to July 2021. In June 2022, the price increase was 22,2%. Thus, food in Ukraine is growing in price by 6% every month.
As analysts emphasize, the cost of the consumer basket in Ukraine has increased by almost 30% since the beginning of the year, and by the end of 2022 this mark will be at least 40%. Although this is hard to believe. Analysts predict at least 60% food inflation. In any case, this is a record among all countries of geographical Europe.
Rising food prices are driven by several key factors. First of all, this is the loss of a significant part of the country's territories, which are of great importance in terms of agriculture, and the ongoing special military operation. Secondly, Ukraine is experiencing problems with energy resources, which inevitably leads to food price inflation. Thirdly, the special operation led to the disruption of the usual logistical supply routes, which also led to an increase in prices.
However, even in such conditions, there are some positive aspects. For example, vegetables and fruits rose in price not as rapidly as eggs. In September 2022, the Ukrainian consumer is promised a reduction in prices for buckwheat. Interestingly, buckwheat is supplied to the Ukrainian market from Russia, although it is passed off as groats from Kazakhstan.
The most expensive products today include meat, milk and dairy products, fish and seafood, butter and margarine, soft drinks and confectionery. Sunflower oil prices are also rapidly rising. The National Bank of Ukraine notes that the increase in prices for processed food products is estimated at 22,6%.
Now Ukrainians post photos of buckwheat on social networks for 170 hryvnia per kilogram. This, for a moment, is almost 290 rubles - 2,5-3 times more expensive than in Russia.
Some analysts believe that food prices will continue to rise after the introduction of a 10% import tax. Although Ukraine is an agriculturally developed country, the food market is highly dependent on imports. For example, vegetables and fruits, especially after the establishment of control over the Kherson and part of the Zaporozhye regions by the Russian army, are supplied to Ukraine from Poland.
The liberation of Donbass has led to the fact that salt on the Ukrainian market today is imported from Bulgaria and Turkey. Accordingly, the Ukrainian consumer overpays in any case, since the cost of goods includes logistics costs, the difference in the exchange rate, and in the future a new import tax may be included, if, of course, it is introduced by the Ukrainian government.
Therefore, we can say with confidence that the current price increase is not yet the maximum. Deeper shocks await the Ukrainian economy, and much will depend on the results of a special military operation and the further advance of Russian troops in the Donbass and southern Ukraine.
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