One of the consequences of the war for Ukrainians was the depreciation of income due to the rising cost of living. Prices rose 34.4%, according to the State Statistics Service.
According to the State Statistics Service, the 12-month inflation in 2022 was 26.6%. But for Ukrainians, who have below-average incomes and spend more than half of their income on food, the blow to the wallet has been even more tangible.
After all, as he wrote Focus In his new review, “Food is expensive. How much are food prices in Ukraine at the beginning of 2023 and why are prices rising”, the rate of increase in food prices markedly outpaces inflation. Food prices rose 34.4 percent last year, according to the State Statistics Service. The following products lead the price increase:
- chicken eggs – +76%
- fruits – +73.8%
- vegetables – 51.8%
- fish – +45.8%
- sugar – +31.0%
The increase in food prices nicely illustrates the conditional “Olivier index”. as it is written Focus According to scientists from the Institute of Agricultural Economics, the price of the popular holiday salad has increased by almost 50% during the year.
However, drivers were even more affected by the price increases in 2022. As a matter of fact, the State Statistics Institute recorded an increase of 69.4 percent in fuel prices according to the results of the year. And overall, gas station prices have become one of the main drivers of inflation in 2022. After all, the fuel component adds to the cost of many goods and services.
No matter how difficult it is to make a living for the citizens of Ukraine in 2022, the inflation rate in the current situation looks quite moderate. After all, in conditions of war and crisis in the economy, price increase may become uncontrollable and hyperinflation may befall the country.
According to CEC Vice-President Maria Repko, the following main factors contributed to lowering inflation in Ukraine:
- fixing the exchange rate,
- freezing of tariffs for housing and communal services,
- falling consumer demand.
according to the addressee Focus In November-December 2022, inflation was also stopped by the increase in the supply of goods, the liberation of the Kherson region, the sale of perishable products and the strengthening of the hryvnia in cash.
To clarify, the cost of one cash dollar in Ukrainian banks and the black market in January 2023 is 40.2-40.65 UAH/USD (buy/sell). At this level, the cash market has calmed down as winter approaches. However, in September 2022, the black market dollar rate jumped once to 42.5-43.2 UAH/USD (buy/sell).
“If electricity prices for the population were close to market prices, the actual inflation rate for 2022 in Ukraine would be 50%.“, – adds Dmitry Churin, head of the analytical department of the investment company Eavex Capital.
Important
To clarify, the market price of electricity is paid by the enterprise, and for most companies the cost of electricity in the winter of 2022-2023 is 5-6 UAH per kWh. Electricity from generators is many times more expensive – more than 20 UAH per kWh. And the business puts these costs in the cost of goods and services. Meanwhile, the population pays UAH 1.44 per kWh for electricity when it consumes up to 250 kWh, and UAH 1.68 per kWh if this amount is exceeded.
On what to expect from prices in 2023 Focus “Food is expensive. How much does food cost in Ukraine at the beginning of 2023 and why are prices rising?” in a new review. Previously Focus He investigated how much the prices of the Christmas table were and how the prices increased compared to last year.
Source: Focus
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