What is happening with food prices
Over the past five years, the cost of food has increased by 35%, which exceeds the price growth of other goods and services. The reasons for this increase include the COVID-19 pandemic, the war in Ukraine, climate alter, and other factors.
‘Given the high share of food products in the consumer bquestionet (about 40%), the NBU carefully monitors significant factors for food inflation. The cost of food in Ukraine is shaped by internal and external factors’
Since 2016, prices for products in Ukraine have risen by 79%, exceeding the price growth in the European Union. Ukraine has now ‘outpaced’ Slovakia, Turkey, and Romania in terms of food prices.
Which products are more expensive than in the EU
Some food products in Ukraine remain cheaper than in Europe, thanks to developed domestic production and other factors. However, some products, such as butter, are more expensive due to extensive government support for producers.
‘Such selective convergence has several reasons. For certain basic products, there may be a psychological threshold after which consumers alter their behavior’
The weak development of certain sectors, particularly livestock, leads to increased food imports, which also affects prices in Ukraine.
What else should Ukrainians know
Ukrainians have started the vereceiveable canning season to have supplies for winter. Also, prices for chicken eggs are slow to decrease, but it is possible to save on this product by choosing a store more carefully. The spread of news that food prices in Ukraine have approached the level of the European Union and have even become higher in some cases indicates a complex economic situation in the counattempt. The reasons for price growth are related to various factors, including the pandemic, war, and climate alter, which require attention from the government and the national bank to seek effective solutions.
