AMCU said the reasons for the rise in price of products

В АМКУ назвали причины подорожания продуктов

The AMC explained why everything is more expensive

On prices among other things, affected an increase in production costs. In particular, spending on wages, and the rapid recovery of consumer demand.

In the Antimonopoly Committee of Ukraine called the main factors of rise in price of food products in 2017. This is stated in the report of the Ministry, says UNN.

First of all, the AMC said the acceleration in consumer inflation to 13.7%. Such a factor did not expect even the national Bank, according to his forecasts, it needs to be 8% less.

“The acceleration of inflation in 2017 compared to 2016 (12.4 percent) occurred because of such factors as the reduction in the supply of certain vegetables and fruits due to adverse weather conditions in the first half of the year, the unstable situation in animal husbandry, the growth of world prices and foreign demand for domestic food products (mainly meat and dairy) and the rise in world oil prices”, – stated in the message.

According to authorities, a price increase also affected the increase in production costs, in particular labor costs, and the rapid recovery of consumer demand.

“According to the NBU, the impact of social standards on inflation in 2017 was manifested first and foremost through the channel of the rising costs of production, particularly the contribution of doubling the minimum wage, centenoka at about 2 p. p. in annual rate of inflation”, – noted in AMKU.

At the same time, core inflation accelerated to 9.5% vs. 5.8% in 2016, added the Agency.

“This happened due to the rising cost of goods and services against the background of the growing influence of secondary effects from high prices for raw products and an increase in other manufacturing costs, as well as a revival in consumer demand”, – noted in Department.

Moreover, as indicated in the report, from the beginning of 2017 inflation expectations declined, but in September began to deteriorate under the influence of the situation on the currency market and the announced increase of the social standards.

“Accordingly, has increased the share of enterprises expecting price increases for their products/services in the next (2018 – ed.) year, including as a result of the growing influence of the factors “labour costs”,” energy prices” and “rate of hryvnia to foreign currencies”, – noted in AMKU.

The non-core inflation accelerated to 19.4% compared to 17.5% in 2016 and was due to high growth of prices for raw products and fuel, the report said.

“Rapidly growing prices for raw meat and milk (respectively 30.3% and 23.1%), as well as renewed growth in prices for eggs (21.2%). Such dynamics reflects the substantially higher global prices for relevant products and high external demand and limited domestic supply of these products against the background of reduction of livestock (except poultry) and unstable epizootic situation,” the report says.

Recall that the AMC is conducting a study of market poultry. According to preliminary data, the Agency allows the occurrence of price collusion between individual participants.

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