Over the past few years, food prices in Ukraine have been growing at a faster rate than in the European Union, which is in line with global trends in food markets. About this it is said in the inflation report of the National Bank of Ukraine.
According to the data, since 2016, the cost of food products in Ukraine has increased by an average of 79% in euro equivalent, while in EU countries – by 46%.
At the same time, the dynamics of prices in different categories of goods was uneven. Thus, bread and cereals, fruits and vegetables, as well as freshwater fish remain more affordable in Ukraine compared to Europe due to lower costs of raw materials, labor and logistics. Sunflower oil also costs 20-25% less than in Poland, which is explained by the developed domestic production.
At the same time, butter prices in Ukraine are 20-25% higher than in Poland. This is due to the high cost of production in Ukraine and significant state support for the agricultural sector in EU countries.
Livestock products show different trends: pork and dairy products are more expensive than in Poland due to structural problems in the industry, while poultry and eggs remain cheaper due to large-scale production and the efficiency of large producers.
The National Bank also draws attention to the fact that the rate of convergence of prices with European prices largely depends on the purchasing power of Ukrainians. The rapid convergence of the cost of basic products to the EU level may lead to a decrease in domestic demand or the transition of consumers to more affordable substitute goods.
