At the end of 2021, inflation rate amounted 10% as compared to December 2020, which was the worst indicator since 2017. MP Serhiy Lovochkin stated this commenting on the inflation data from the State Statistics Service.
“Double-digit inflation rate has led to real depreciation of already meager living wage. The latter was indexed by 9.3% in the state budget-2021 while the inflation rate was 10% by the end of year.
This means that basic social standards have declined in real terms and Ukrainians have become poorer,” Lovochkin emphasized.
The MP noted that the greatest impact on inflation in annual terms was caused by the rise in food, utilities, and transport prices. He added that by the end of 2021, the inflation in food prices was double-digit. In December 2021 (compared to December 2020), food prices soared by 13.3%. The cheese and cottage cheese prices increased by 10.3%, pasta by 10.9%, milk by 11.3%, vegetables by 12.7%, meat by 12.9%, butter by 13.6 %, bread by 18.7%, eggs by 19%, sugar by 28.3% and sunflower oil set the record with 38.8% increase.
“The most basic groceries such as bread, sunflower oil and sugar as well as utilities became much more expensive. That is, as a result of the government’s inaction the poorest Ukrainians whose main expenses are staple foods and utilities, suffered the most. Only now the authorities had heard the demands of the opposition and decided to introduce state regulation of essential goods prices. Although for some reason they did not include the whole list but individual items only,” Lovochkin noted.
According to him, it is now necessary to use all the available market and administrative measures to curb inflation rate and prevent its further increase.
“In addition to revising the rate setting policy, it is essential to raise the issue of reducing VAT on staple foods, as well as increasing state support for the farming indistry. It is also necessary to impose a moratorium on raising utility rates in 2022, and ramp up domestic hydrocarbon production. The implementation of these measures will allow to reduce inflation rates as well as introduce support to local manufacturers,” Lovochkin concluded.Follow @serhiylovochkin