Over the most recent six months, inflation rates in Ukraine got significantly higher. The prices rose by 6.4 percent between early January and late June 2021; on a year-on-year basis (June 2021 compared to June 2020), inflation has almost reached a two-digit figure (9.5 percent), having significantly left behind the increase of minimal social standards. This was stated by OPPOSITION PLATFORM – FOR LIFE MP Serhiy Lovochkin.

“In the first six months of 2021, a sharp rise in prices and fees for a number of essential goods and services was recorded. Between early 2021 and late June, the prices went up by 6.4 percent, while the minimum subsistence rate only increased by 4.8 percent (from 2,189 hryvnia to 2,294 hryvnia), and the minimum pension by 4.8 percent (from 1,769 hryvnia to 1,854 hryvnia). It’s a recipe for pauperizing the population, with the most vulnerable categories like retirees, disabled persons, and financially disadvantaged citizens suffering the most,” the MP said.

According to Lovochkin, higher inflation rates have been mostly caused by the rise in utility services fees, the prices for food, transportation, and other vital goods and services. Utility rates in June 2021 were by 36.4 percent higher than in June 2020, with electricity getting more expensive by 36.6 percent, and natural gas by 175.3 percent. Among foods, sunflower oil rose the most in price, by 80.3 percent, sugar by 70.1 percent, bread by 16.1 percent, eggs by 12.6 percent.

“Inflation rates growing more rapidly than basic social standards lead to greater poverty. Last year, it reached almost 50 percent, but might be even higher this year. However, the government is not really concerned. It has not adopted any effective measures to stop the inflation,” Lovochkin said.

The politician added that to harness the inflation and increase social protection for citizens, the nation needs large-scale solutions on lowering VAT for social foods and the fees for utility services.

“Our parliamentary faction has drafted real proposals that, if adopted, might stop the crisis developments in our economy and provide for increased social protection of citizens,” Lovochkin said.