Despite the fact that the opposition in May demanded from the government to curb inflation, the Cabinet did not take the necessary measures, which led to a decrease in the living standards of Ukrainian citizens and an increase in poverty in the state. Because of this, the MP of the “Opposition Platform – For Life” group Serhiy Lovochkin appealed to the head of the government, Volodymyr Groisman, in a request to take urgent measures to keep inflation.
“I propose to urgently take measures aimed at keeping inflation, as well as introducing effective mechanisms for minimizing the negative social consequences of rising prices and tariffs. About the results of the measures taken please inform me in the statutory period,” the request says.
Serhiy Lovochkin reminded that in May this year, in a request to the Cabinet, he emphasized the need for urgent actions of the government to reduce inflationary pressures and minimize the negative social consequences of inflation, but these measures were not taken.
Meanwhile, since the beginning of the fall, the price increase has accelerated significantly. During September-October 2018, the value of consumer goods and services grew by 3.6%, which is one half of the growth of inflation since the beginning of the year – 7.4%.
“The negative social consequences of rising inflation are exacerbated by the fact that the prices of goods and services are rising rapidly, most demanded by citizens. In particular, since the beginning of the year, products have risen in price by 4.5%. Most of them raised in price for bread by almost 16%, pasta – by 11%, fish and fish products – by almost 10%, meat and meat products – by 9%,” Serhiy Lovochkin told.
In addition, according to him, the availability of passenger transport services to citizens is decreasing, since the beginning of the year they have risen in price by 14.2%, including road transport – by almost 23%, and railway – by almost 16%. Since the beginning of the year, the cost of education services has increased significantly – by 13.2%.
“At the same time, the number of citizens unable to pay for utilities is increasing – since the beginning of the year their price has increased by 3.6%. This is the result of ineffective activities of the system of social protection of citizens in the conditions of the sharp increase of utility tariffs: for the maintenance of houses and adjoining areas since the beginning of the year, almost 22%, for water supply – by almost 17%, sewerage – by 17.3%, housing maintenance and repair – by almost 10%. Communication services are also at the forefront of rising prices – almost 12% since the beginning of the year and medical services – by 7.1%,” the MP said.
He noted that, as a result of these trends, Ukraine has become the actual leader among European countries (without Turkey) at rates of growth. In October of this year, compared to the same period last year, prices in Ukraine increased by 9.5%, while in the EU countries, in particular, in Poland – by 1.7%, in the Czech Republic – by 2.2%, in Hungary – by 3.8% %, Lithuania – 2.9%, Romania – 4.3%, and in the CIS countries, in particular, in the Russian Federation – 3.5%, Moldova – 1.2%, in the Republic of Belarus – 4.9%.
“The main factors of this phenomenon, as before, are miscalculations in the government social and economic policy. First of all, it is the issue of the reduction of state support for farmers, the abolition of state regulation of prices for socially important goods and an increase in administratively regulated tariffs, primarily for utilities,” the politician is confident.
He believes that the failure of the Cabinet of Ministers of Ukraine to provide effective support to Ukrainian exporters has led to a significant deterioration in the balance of foreign trade, which has hit a record shortfall after 2013. This negative trend, together with the growth of external debt repayments, causes further growth of the devaluation pressure on the national currency.
The request states that as a result of these factors, in recent months this year prices will continue to gain momentum and reach at least 10.5% in annual terms. That is, it is already possible to assert that, according to the results of the current year, Ukraine will retain its leadership in Europe (excluding Turkey) in terms of annual inflation, which is more than 4 times higher than the average for the EU countries. The authenticity of such a forecast has already been recognized by the National Bank, which warned that by the end of the year inflation would exceed 10%.
“Keeping inflation at an ambiguous level for the fifth year in a row signals the failure of the anti-inflation policy of the government and the NBU, which together cannot ensure price stability and keep inflation. The low efficiency of the steps taken by the Cabinet of Ministers of Ukraine in this direction has led to the rampant spread of poverty among the Ukrainians, the main reason for which is the constant rise in prices and tariffs. The level of absolute poverty in Ukraine for 2014-2017 has doubled, and the Ukrainians, according to the Global Wealth Report rating, are recognized as one of the poorest nation in the world in terms of the personal wealth of citizens,” Serhiy Lovochkin summed up.Follow @serhiylovochkin