There are several reasons for the increase in inflation in the country, it is not only the ongoing full-scale war, Oleg Ustenko notes.
The inflation rate in Ukraine at the end of 2022 will average 30%. The question is now deciding what to do with such high inflation. Oleg Ustenko, adviser to the President of Ukraine, announced this in an interview with the Correspondent published on Wednesday, November 23.
“You have to understand that when it comes to the level of inflation, it is an average figure. It is different for different segments of the population. But of course, inflation is for everyone, and on average in the country it will be about 30% this year. For some types of products, it will be higher when it comes to food products, but inflation will be lower for non-food products,” he said.
According to him, there are various reasons for such an increase in inflation.
“We should not forget that the high level of inflation in general in the world. If you look at the largest economies in the world, then there is inflation at the level of about 10%, if we are talking about the EU and the USA There are countries where inflation is higher, especially in Turkey where, according to this year’s results, it is at a level of more than 70%. Ukraine is an open economy and we partially import this inflation for ourselves. .When prices rise in the world market, they rise in our country, especially when it comes to our products that are produced and sold in the world market, or goods that we buy for our own needs,” explained the adviser to the head of state.
Ustenko also drew on the fact that when Russia destroys Ukrainian infrastructure, it also destroys common supply chains.
“Furthermore, the cost of fuel has grown quite rapidly, if you compare the prices in the pre-war period and today, the difference is noticeable. Fuel is one of the important ingredients that affects the cost of production, because any product, part The cost is the transportation costs. Logistics chains have become longer, and fuel has become more expensive – and it appears that the cost of production is increasing. These factors are also drivers of inflationary pressure we are feeling,” the official said.
The presidential adviser also recalled the devaluation of the Hryvnia.
“Compare the exchange rate that was before the war and now – a noticeable difference. That is, the devaluation of the Hryvnia is also a source of inflation,” he concluded.
Remember, on November 10, the State Statistics Service reported the increase in inflation in October.
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I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.