In Ukraine, the prices of socially important products: why and what to expect next

In October will mark a year since the Cabinet abolished the state regulation of prices for socially important goods. As evidenced by recent data of the state service of statistics, during this time, the majority of the actuary has risen, some 30-45%, which is 2-3 times more than the average annual inflation. But some products have maintained their price, and even cheaper. “Today,” found out why it happened and what to expect next.

FOR THE YEAR. Recall that socially important goods — this is the minimum list of products, required person in order not to stay hungry and get enough calories and vitamins. The trading margin for these goods in retail was not supposed to exceed 15% of the wholesale price. The Cabinet of Ministers resolution №1548 from 1996 to the list acproduction were: milk with 2.5% fat, sour cream (15%), cheese (9%), butter (72%), sunflower oil, beef and pork category I (with bones), boiled sausages of I grade, poultry (carcasses), bread from wheat flour 1st grade bread rye and rye-wheat, wheat flour, pasta from flour of I grade, buckwheat, rice, egg of I category, sugar, vegetables borabora.

According to state statistics, during the year, the most expensive meat and eggs — 45%. A kilo of pork now costs on average UAH 104 (72), a dozen eggs — UAH 18.5 (was 12.7). Next are dairy products and poultry — rising prices for 31-36%. For example, a liter of milk costs UAH 13 and 17 pounds of butter — 95 UAH (73 UAH), chicken carcass — 55 UAH/kg (41). Approximately the rate of inflation, which for the year amounted to 16.2% (data for August), more expensive flour, bread and sugar (15-18%), slightly more than rice (+22%) and “Varenka” (+24%). But the sunflower oil and cheap pasta has not changed in price. And only buckwheat fell by 5 UAH/kg (17%).

EXPERTS. Economists and market analysts have directly linked the rise in price acproduction with the abolition of the mechanism of “containment,” but see in this a positive effect — prices are really market. Yes, many positions are in Europe, but it is a stimulus for the further increase of salaries of Ukrainians to evrourovnya.

“Indeed, the abolition of price controls led to a rise in prices, analyzes economist Ivan Nikitchenko. Unfortunately, the state did not provide other mechanisms for maintaining prices, such as the reduction of taxes for manufacturers, a reduced VAT rate for agriculture and all of them were finished as an effective mechanism of subsidies to agricultural producers. Also the cost of farmers has increased due to higher prices for fuel, fertilizer, growth mentorplace. With regard to higher than a year ago (average 60%), prices bersabar the regulation effect is weak, more affected by bad weather conditions as a result of the worst harvest.”

Director of the Ukrainian Association of trade networks suppliers Oleksiy Doroshenko said that most of sipoteni prices for the year reached the level of world or close to it, other prices depend on supply and demand. “We export sunflower oil, sugar, chicken, eggs, in the end their prices in the domestic market such as abroad, told us Doroshenko. — Milk, meat, bread is also approaching. But buckwheat was previously overvalued, despite the regulation, therefore, for the year fell because of falling demand.”

Further significant growth of prices for macproduct experts do not promise, but until the end of the year may increase by inflation (estimated 2-3%) meat, bread and dairy.