Thrifty homemakers have already started to prepare for the New Year’s Eve and Christmas holidays because early purchases do not devastate the family budget. Besides huge lineups in groceries stores and markets, economists have noted that the newest price increase has palpably hit Ukrainians’ pockets. Prices for eggs and dairy products have nearly doubled in comparison to the same period last year; meat and sausage have increased by 30 to 40 percent, and candy — by 20 percent. Experts forecast the next price increase for sugar and confectioner products, so now is the time for shoppers who want to save money to buy a couple of kilograms of granulated sugar and two or three kinds of shortcakes. It is better to buy frozen prepared meat a few weeks before New Year’s Day: during Advent prices drop somewhat but rise again on the eve of New Year’s.
“Olivier salad remains a traditional dish of the New Year’s table. To prepare one kilogram of this cold salad, you have to spend nearly 15 hryvnias on the ingredients: this is two or three hryvnias more than last year. The reason is that sausage and vegetables are more expensive,” explained Tetiana Vasylieva, the head of one of Kyiv’s supermarkets. “The most popular purchases before the holidays are meat products (a family of four spends an average of nearly 100 hryvnias on sausage and meat) and frozen fish and herring; that’s another 15-20 hryvnias. Vegetables have not risen much in price compared to last year’s New Year’s holidays, but customers will have to pay much more for fruit: the price of lemons and mandarins, ever-present at the New Year’s and Christmas holidays, have increased by over 200 percent. Alcohol prices remain relatively stable. Whereas last year the average Ukrainian family spent 300-400 hryvnias for the New Year’s table in 2006, this year’s outlay will be around 500- 700 hryvnias. However, despite the price increases, there is no lack of customers. You only have to order food on time. “
Market sellers like the holidays as well. Whereas a kilogram of meat now costs an average of 40 hryvnias, on the eve of the holidays the price will reach 60-70 hryvnias, salespeople predict.
“This is our profit,” said Svitlana Lyzohir, who sells meat at Kyiv’s Obolon Market. “Prices increase every year before the holidays. For example, pig’s feet will cost two or three hryvnias more in one week.”
The demand for poultry has not dropped either. A goose costs 50-70 hryvnias at the market, and turkeys are even more expensive: 100-120 hryvnias.
As the State Price-Controlling Inspectorate assured The Day, the holiday prices will continue to empty out our wallets during all of next January. But the market will calm down a bit after the holidays.
COMMENTARY
Roman KORNIIENKO, economist:
“According to the data of the State Statistics Committee, incomes rose by 28.4 percent in 2007 in comparison to 2006. But 16.7 percent of our incomes have been eaten by inflation. Since last December food prices have increased by 17.5 percent. So it appears that we are nominally getting more money, but food prices are increasing faster and our incomes cannot cope with them. A rapid increase in food prices has become the main factor of inflation, because the average Ukrainian spends 60 percent of his/her income on food. The inflation level of 2.2 percent in September was a record one in the last seven years, and already in October there was a new record — 2.9 percent. Ukraine’s Ministry of the Economy recently cheered us up by raising the inflation index of 7.5 for 2007 to 14.5 percent. Inflation of 7.5 percent is moderate inflation that Western economists view as an element of normal economic development. But inflation that exceeds the 10-percent limit (in Ukraine’s case it is 14.5, or according to some forecasts, 15-16 percent) is called galloping. Western economists are convinced that it is dangerous for the country and recommend urgent anti-inflation actions. If no one intervenes, inflation will probably hit 100 percent. Considering the fact that some food products have increased by 73, 40, and 38 percent since the beginning of the year and the helplessness of our high-ranking officials as they try to solve the price question, fears that inflation will switch from a gallop to full speed are not that illusory.”
