Lovochkin: Inflation Rates in Ukraine Have Soared at Double Digits for Four Months Now
As of the end of October, annual inflation amounted to 10.9 percent, and it’s been hitting high two-digit figures for four months now, the first time since 2018. This was stated by MP Serhiy Lovochkin commenting on the inflation data by the State Statistics Service.
“Ukraine remains the most inflation-ridden nation in Europe, with its neighboring countries showing the following price increase rates: 4.9 percent in Czech Republic, 6.3 percent in Lithuania and Romania, 6.8 percent in Poland, 6.5 percent in Hungary, 6.7 percent in Moldova, and 8.1 percent in Russia. For the fourth month now, Ukrainians are seeing high double-digit inflation, and the government has taken no measures to stop it,” Lovochkin said.
The politician noted that higher prices for staple foods, utility rates, fuel, and services eat up even the meager increase in social standards. He reminded that the 2021 state budget provided for a 9.3-percent growth of the subsistence minimum, while the real inflation as of the yearend will exceed 10 percent. This means that basic social standards in real terms will decline, and Ukrainians will become even poorer.
According to him, the greatest impact on inflation in annual terms was caused by the rise in prices for food, utilities, and transport services. High double-digit inflation in food prices also persists. “In October 2021 (compared to October 2020), prices for food soared by 14.2 percent, for utility fees by 18.8 percent, electricity by 26.5 percent, and gas by 47.2 percent,” the MP said.
“The government is obliged to employ all available market and administrative measures to curb inflation rates. In addition to revising the utility fees policy, it should also reduce the VAT on food staples and increase state support for agribusiness by at least 2.5 times. Unfortunately, the acting Cabinet of Ministers is only capable of imitating frenzied activity and signing meaningless memoranda. It must resign. Ukraine needs a government that knows how to stop economic crisis and strengthen social protection of citizens,” Lovochkin summed up.