In Ukraine, the growth of food prices has slowed down: what is happening with bread, eggs, and vegetables

In June of this year, the growth of food prices noticeably slowed down after a sharp increase in previous months. Food prices rose by 1.3% compared to May, but on an annual basis, the growth was 23.2%.

The reason for this was the situation in the bakery market, where bakers did not manage to raise prices to a level they considered justified.

'Retail chains are simply not ready to agree to a price increase,' quotes Yuzhanin the words of Yuri Duchenko, the first vice-president of the Ukrainian Bakery Association.

Significant changes also occurred in the egg market due to the end of the trade visa-free regime with the European Union, which led to a decrease in prices for this product.

Declining vegetable prices and general inflation

Ukrainian producers faced pressure on egg prices due to the loss of the ability to export to Europe, which led to a decrease in their cost. Vegetables became the cheapest this month, with prices dropping by 8.1% over the month.

General inflation in Ukraine is also falling, down to 14.3% on an annual basis in June. The National Bank predicts further declines in inflation in the second half of the year with a stable situation in the energy market and no new shocks in the food sector.

In June of this year, a slowdown in the growth of food prices in Ukraine is observed due to the disagreement between bakers and retail chains regarding the price increase for bakery products. The price of eggs also decreased after the end of the visa-free trade with the EU, and vegetable prices fell the most due to pressure in the domestic market. Despite this, general inflation is declining, and the National Bank expects further reduction in inflation rates in the future.