Product prices in Ukraine have been compared to European – the National Bank

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Prices for food products in Ukraine are approaching prices in the European Union. Since 2016, Ukrainian products have risen by 79% (in euro), while in the EU only 46%. Most of the prices were compared to Polish, taking them for the Central European ones. This is stated in the inflation report of the National Bank.

– Despite the overall trend towards raising prices with European, for individual basic products (especially those that have traditionally been much cheaper in Ukraine) can exist a certain The psychological threshold, after which consumers significantly change their behavior. The rapid approximation of these goods to the European level or even exceeding the price level in neighboring countries can cause a significant fall in domestic demand or reorientation to cheaper substitutes. Therefore, the speed of price convergence is partly determined by the purchasing power of the Ukrainian consumer, – the report reads.

The cost of bread and cereals, fruits and vegetables, freshwater fish remain lower in Ukraine due to less costs for raw materials, work and logistics. Sunflower oil is also cheaper by 20-25% thanks to developed domestic production.

Prices for butter are higher by 20-25%. This is due to the high cost of production and significant state support for agricultural producers in EU countries.

Pork and dairy products are more expensive due to the structural problems of the industry, while poultry and eggs are cheaper due to the efficiency of large producers and saving from scale.

Photo: bank.gov.ua

• On June 3, the Antimonopoly Committee launched a case by raising chicken egg prices with the two largest manufacturers – “Kvochka” and “Yasensvit”.

Source: kp.ua