Compared to last year, the price of carrots increased by 256 percent and the price of potatoes increased by 151 percent. Economic expert Oleg Pendzin explains this by crop failure caused by abnormal drought.
Preparing Olivier for the New Year 2025 will be much more expensive than last year due to the increasing prices of products of the “cheap segment”. Oleg Pendzin, general director of the Economic Discussion Club, said on Novosti.Live that prices were affected by crop failures and a drop in real incomes due to abnormal temperatures.
According to Novini.Live, this year the cost of the traditional New Year’s salad “Olivier” increased by 27% compared to last year. Carrot and potato prices increased the most, by 256% and 151% respectively. The least increased prices were peas with 8 percent and mayonnaise with 11 percent. If the total cost of salad for the New Year 2023-2024 was on average 191.52 UAH, this year it was 243.96 UAH.
According to economic expert Oleg Pendzin, Olivier does not present a complete picture of the consumer basket of Ukrainians. The increase in price primarily reflects the increase in vegetable prices due to drought and abnormal heat, which led to poor harvests.
“According to Goskomstat, our vegetables have grown by an average of 70%,” Pendzin said.
The expert also claims that the middle class began to save on food due to the decline in the real income of the population. A survey by the Razumkov Center showed that at least 44% of Ukrainians admit that they do not have enough money for necessary items.
“They are saving on products and buying lower quality products. 15 percent of respondents refused to answer, so we can assume that it is 60 percent, not 44 percent,” the economist said.
According to the expert, this shows that the middle class is shifting from a more expensive food basket to a cheaper food basket.
“If you and I are rich, we eat more meat and dairy; If we are poor, we eat more bread and potatoes, let’s imagine this in addition to the traditional decrease in supply. Demand also increased. They were people who allowed themselves a lot more when it came to food,” Pendzin explained.
The expert noted that prices rise when supply is low and demand is high. Therefore, the price of the segment used for Olivier salad has increased significantly and, accordingly, the cost of the salad has also increased.
“Meanwhile, the price of meat increased only 3% because it is an expensive segment and the price of fish did not increase much,” the economist added.
Let us remind you that on December 4, the media explained why food prices in Ukraine increased by 50 percent and how long the price increase would last. It is stated that fruit prices have increased the most recently, and the prices are mostly affected by crop failure and Russia’s attacks on the Ukrainian energy sector.
Also on November 23, Oleg Pendzin warned that prices for products previously not affected by inflation may increase before the winter holidays due to increased demand. This is especially true for meat and fish.
Source: Focus
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