Why in Ukraine is constantly rising prices

Prices in Ukraine lag behind European due to low income levels. Photo: The Country

The price jumps are due not to sufficient capacity for storage and processing of products. So, the famous crisis with buckwheat arose because not enough conditions for storage of raw materials, said Gazeta.ua financial expert Alex Kush.

“In addition, in Ukraine is not always justified by the seasonal factor. When the price during the season grows on 20-30% is normal. When fluctuations occur suddenly raises questions. In the first place to the Antimonopoly Committee, which should follow sharp jumps of the prices” , – says Alexei Kusch.

Prices in Ukraine lag behind European due to low income levels.

“In 2019, one side will see the alignment of prices to European levels. On the other – obviously our salaries will grow at a slower pace than the cost of goods and services. Therefore, the quality of life of Ukrainians will get worse”, – the expert added.

According to him, the government should create more facilities to process, store and transport raw materials. To run in parallel to the work of the Antimonopoly Committee. Until he begins to work effectively, the market will look for weak areas and create a “price bubbles”.

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According to the economist Alexander Okhrimenko, prices rise due to VAT.

“This system is not effective. Manufacturers, sellers put in the cost of goods an additional 20%. After all, they don’t return the value-added tax. And the money they don’t want to lose,” says the economist.

For 2018 prices, increased prices on vegetables, bread and meat. Leaders of a rise in price of steel onions and carrots. In June, a kilo of carrots cost 35 UAH. Now the price has dropped. Significantly more expensive bow. Last year, per kilogram paid RS 3.5. Now more than 15. Until the end of the year, another 10% will be added to the price of potatoes. Since the beginning of August it has risen by 15-20%.


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