This summer, Ukrainians were pleasantly surprised by the range of products and relatively favorable prices, but worried about September due to higher excise duties on fuel, possible power cuts, the threat of bread shortages, a sharp rise in coffee prices in Europe and expensive chocolate candies.
September and November of 2024 will be striped and contrasted. For vegetables such as potatoes, a short-term price drop is accompanied by a rise, especially for high-quality produce.
Without taking into account the direct impact of the war on prices, many other factors are added to the usual growth factors, such as higher electricity prices, fuel excise, power cuts, and switching to generators in the food and retail trade. Initiatives and plans to increase taxes and fees in agriculture and the food industry due to lack of experience and logistical difficulties.
The heat has contributed to rising food prices and will continue to affect autumn prices. Eventually, lower yields will lead to higher prices for feed and livestock products.
Although the autumn vegetable harvest is somewhat stabilizing the situation, the NBU expects inflation to accelerate over the next few quarters as the impact of last year's harvest is exhausted, and operating expenses are under further pressure due to power outages and labor shortages. This will be exacerbated by the revision of excise duties and the negative impact of the summer drought. Meanwhile, inflation will remain moderate at 8.5% at the end of 2024.
Businessmen claim that they have run out of sturdiness and that consumers should be prepared to pay 20 to 30 percent more for everyday foods.
