“Inflation is a reflection in the prices of the effects of the active phase of war, in particular by reducing the supply of electricity and labor.”, – WRITE: www.unian.ua
Inflation is a reflection in the prices of the effects of the active phase of war, in particular by reducing the supply of electricity and labor.
In 2024, the growth rate of products for products were higher than the total inflation level / photo UA.depositphotos.comPrice dynamics during 2024 was acceptable and the acceleration of inflation to 12% per annum at the end of the year was only a matter of time because the war continues and causes tremendous losses to the economy.
This is stated in “Monitoring of the main events in the economy of Ukraine” for December 2024 from the Ministry of Economy.
“After another attack and destruction of domestic energy, the military nature of inflation began not only to dominate the market, but also to stimulate price growth. As a result, the inflationary dynamics went beyond the target of the National Bank (5%) precisely because of the previous rise in price of electricity. A smaller supply of some products because of the influence of adverse weather conditions on agricultural yields, “the document reads.
The ministry noted that consumer inflation is, in particular, a reflection in the prices of the effect of the active phase of war by reducing the supply of electricity and labor against the background of continuation of infrastructure destruction and, accordingly, increasing the cost of electricity, continued mobilization to the Armed Forces and external migration and, accordingly, increasing the staff.
“These factors have adapted the economy to a new level of costs due to the change in the overall price level. In addition, the pressure on the economy was also due to a temporary shock – a fall in the crop of some agricultural crops. Under such conditions, the formation of annual consumer inflation at the level of 12% is acceptable for the country, which is in the active phase of war in its territory, ” – said in the department.
It is noted that in 2024 the growth rate of food prices were higher (14.2% in annual dimension) than the total inflation rate (12%, respectively). This is due to the combination of the shock of the supply shock primarily agro -products, which has been added to the expenses of the overall cost factor. Accordingly, prices for products that are raw materials or low processing increased the most.
In addition to internal shocks, pressure from the world agroinflation (due to the reduction of supply caused by unforeseen weather conditions) has also been added. Also, due to current military conditions, the rise in price of products with a high degree of industrial processing (by 14.9% in annual calculation) has accelerated.
Inflation in Ukraine is the latest newsThe consumer market inflation in January 2025, compared to January 2024, was 12.9%. Food and soft drinks in total went up to 14.3%in the year.
At the same time, the Executive Director of the Economic Discussion Club Oleg Pendzin warned that Ukrainians need to prepare for the rise in prices for products this spring. The cost of products is influenced by the situation with electricity and heating, as well as inflation.
You may also be interested in news:
- Ukraine has a reserve of external assistance for a year forward: People’s Deputy explained how money will be spent
- The expert explained whether to wait for Ukrainians sharp jumps of course in 2025
- Experts appreciated Ukraine’s chances of recovery after the war