Unprecedented bread prices' increase observed in Ukraine

Ukraine has recorded a rise in the price of bread at an unprecedented rate in 2017 – bread prices bread grow faster than the those of flour from which it is made.

This rise in price is due to the the same tendency in the energy sector and the minimum wage increases advertised by the government of Vladimir Groisman.

Oleg Pendzin, executive director of the Economic Debating Club NGO, stated this at a press conference in Kiev.

"When the price of flour changed by 3-4%, that of bread increased by 18-19%. That is, the raw material component has no special effect in the price structure. The bulk of the additional costs of bakers should be seen from another perspective.

This comprises both the growth of energy costs and that of the minimum wage.

Unfortunately, since July 1, the state has completely refused price regulation for socially important goods, including bread. Therefore, the state is incapable of controlling the causes of such an increase in the bread prices in the view of the same increase in the grain sector. It let these prices move to to generalized floating.

This is a negative point as bread is the main product for Ukrainians these days," the analyst said.

DONi News Agency