In Ukraine, prices for mass-produced bread will remain under control until the end of 2024. This was stated by Oleg Pendzin, a member of the Economic Discussion Club. According to his forecast, the price increase will not exceed 1.5-2%, even in the worst-case scenario.
Even in 2022, during the active phase of hostilities, when inflation reached 27%, bread prices increased by 20%, which was a record high. In recent years, the pace of bread price increases has slowed significantly, remaining within 1-1.5% each year. In 2024, the annual price increase may reach a maximum of 15-16%.
“I am absolutely certain that there will be no significant price increase until December,” Pendzin assured.
The rise in bread prices is due to a number of economic and production factors:
- Rising raw material prices . Flour prices have doubled due to limited grain supply on the domestic market.
- Cost of energy . Increased gas and electricity tariffs have affected production costs.
- Employee wages . Inflation forces manufacturers to raise wages to retain qualified personnel.
- Logistics : Rising fuel and transportation costs are making transportation more expensive.
Despite objective factors contributing to the increase in production costs, Ukrainians should not fear a rapid increase in the price of bread. Thanks to the stabilization of the economy and control over inflation, producers are able to keep prices within the projected 15-16% per year.
