Ukrainian food market demonstrates a steady upward trend in the prices of almost all products, which will continue in the future. This was stated by the head of the department of pricing and agricultural market of the Institute of Agrarian Economics Inna Salo, as “ProAgro Group” reports.
According to her, the rise in price was caused by a number of factors. First of all, it is the government increase of electricity tariffs from January 2021 due to the cancellation of the preferential tariff (+36.6%), rising prices for water supply (+10.9%), wastewater treatment (+17.3%), higher prices of energy, rental fees and utilities in general, the level of employees’ wages, transportation costs, particularly gasoline A-95 (+22%) and so on.
The increase in expenditures in the above-mentioned areas forced producers to increase the cost of food products. Consequently, the inflation index in the consumer market of Ukraine in 2021 has doubled – up to 10%.
According to the calculations of scientists of the Institute of Agrarian Economics, in the first quarter of 2022 a further increase in prices is expected, particularly for vegetables by 15-25% against the prices of early 2022. At the same time, the cost of borshch in January 2022 is already more than 2 times higher than in January last year.
