State regulation of prices was finally canceled: what’s more expensive

State regulation of prices for products gone — the Cabinet has recently adopted a resolution on its final abolition. This fact coincided with a sharp rise in inflation for food, according to state Statistics, the products rose in may by 2.3%, according to estimates of the national Bank by as much as 4.7 percent!

The market experts ‘ opinions differ: some say that government regulation does not affect prices, so it still should have been cancelled, others that disappeared by psychological factors, allowing though as-that to restrain the appetites of the trade.

THAT WAS CANCELED. Recall the first time the Cabinet has suspended a state regulation of prices in October 2016. The abolition of restrictions of trade margins up to 15% of socially important goods (flour, pasta, cereals, meat with bones, boiled sausage grades 1 and 2, milk, cheese, sour cream, butter, eggs, sugar, sunflower oil), was to last until January 2017, but it was extended indefinitely. So the other day issued a decree of final abolition.

Now the prices have become free: so manufacturers can lay any profit in the formation of wholesale prices, and trade may establish at least 100% premium to the wholesale price, if the product is in demand.

As explains a press-service of the Cabinet, the pilot showed that the suspension of the state regulation had little impact on rising prices, so its complete abolition will simplify doing business, increase competition and form a price depending on supply and demand for pureprint.

But that’s not all: the canceled, boundary prices on bread assorto (“Ukrainian” and the loaf), baby food, finally, on services in the markets (“market” with sellers unable to take any price for place).

EXPERTS. The opinions of experts about the abolition of state regulation differ. According to the President Ukranalittsentra Alexander Ohrimenko, sellers and so avoided it. “Did corn-sunflower mixture, sold separately the meat and separate suprabony of bones, etc. So the abolition of state regulation right”, — said Okhrimenko.

The General Director of Association of suppliers of retail chains Alexey Doroshenko another look. He agreed that the volume of actuary was small and did not affect the market, but to say that government regulation is futile, impossible.

“It was a deterrent. The manufacturer knew that if it would dramatically increase the price, it will be fined, and the prices are more or less smoothed out. When in August of 2016 for the first time voiced the idea of abandoning the regulation, immediately prices began to rise.”

FOR THE SUMMER. But the traditional summer “failure” of prices, experts do not expect. Doroshenko estimated as in June increased the price of the actuary. For example, pork has risen by 3.5 HR (+4%), or 91 UAH/kg, cooked sausage 1 grade — 0.5 UAH (0,7%), or up to 66 UAH/kg.

Just added more cabbage and eggs — growth, respectively, for 4 UAH per 1 kg (+42%) and 3.5 UAH/Dec. (+34%), or to 13.5 UAH per kilo/dozen.

Not cheaper and vegetables, despite the summer, and dairy. On the contrary, according to the agro portals, tomatoes, even has risen in price in the opt UAH 3-4, or up to 25-26 UAH/kg.

The analyst of the Ukrainian agrarian Confederation Dmitry Dane explains the high cost of vegetables a protracted and unexpected spring frosts. Experts doubt that this year will be the traditional summer deflation.

“Prices will not fall due to the double growth mentorplace, as it raised the cost of all products” — says Okhrimenko.