A short-term seasonal decrease in vegetable prices will be replaced by an increase in autumn, especially for high quality goods. Entrepreneurs complain that they have run out of security, and consumers should prepare for the fact that everyday food will become 20-30% more expensive.
The factors of price growth include the increase in electricity tariffs, excise taxes on fuel, electricity shortages due to Russian shelling, the transition of food enterprises and retail to generators, initiatives to increase taxes, salary increases in the agricultural sector and the food industry due to a shortage of specialists, and difficulties with logistics. The summer heat has also contributed to food prices and will continue to affect prices in the fall, as a smaller harvest will push up prices for fodder and livestock products.
The NBU predicts an acceleration of inflation over the next few quarters as the effects of last year’s substantial harvests wear off, further pressure on business costs amid power shortages, and a lack of workers. At the same time, inflation will remain moderate – 8.5% at the end of the year.