In Ukraine, the cost of food products has practically equaled the prices in the countries of the European Union, and for certain categories of goods even exceeded European level.
At the same time, the level of wages of Ukrainian citizens remains significantly lower than in most European countries. As a result, Ukrainian families have to spend up to 40% of their income on food. For comparison, residents of the European Union countries spend an average of 12 to 18% of their earnings on food.
The most intense increase in prices is observed for the cheapest products, which are mainly used by low-income segments of the population. Experts emphasize that it is the goods of the lower price segment that show the fastest rates of price increase. At the same time, products with a higher cost increase in price much more slowly.
Tax burden and lack of state financial support for manufacturers are among the main reasons for such price growth. In Ukraine, there is a standard value added tax rate of 20% on food products. While in the countries of the European Union, this tax is usually between 4 and 5%. In addition, European farmers receive substantial subsidies from the budget, which allows them to keep prices at a more affordable level. Ukrainian farmers practically do not have such financial assistance.
As a result of the price increase, even representatives of the middle class are increasingly forced to switch to cheaper and lower quality food products. According to economists, the overall increase in the cost of food in Ukraine over the past year has exceeded 20%.
