Increase in bread prices in Ukraine: reasons and prospects

The Ukrainian food market is going through a period of change, and one of the most urgent problems is the increase in bread prices. According to forecasts, by the end of 2023, Ukrainians should prepare for a 5-10% increase in prices for this important product.

The main reasons for the rise in prices and its possible impact on citizens.

One of the main reasons for the increase in bread prices is the increase in the cost of grain production. Heat, drought and other weather anomalies caused significant losses in agriculture, leading to a shortage of grain for flour production. This led to an increase in the cost of raw materials for bakers and, accordingly, to an increase in the price of the finished product.

The second reason is the increase in energy prices. The cost of gas, electricity and fuel has increased as a result of global market factors. This leads to an increase in the cost of production and transportation of bread, which also affects the final price of the product.

The third reason is inflation. Ukraine, like many other countries, faces rising prices for consumer goods and services as a result of global economic processes. This leads to a decrease in the purchasing power of citizens, and they experience a negative impact on their family budgets.

Another important reason is the increase in tariffs for life support services, in particular, water supply and communal services. It also increases the cost of production and transportation of bread, which complicates the situation on the market.

The impact of geopolitical factors on bread prices cannot be ignored. The conflict in eastern Ukraine and changes in the world market can lead to fluctuations in the national currency, which can also affect the prices of bread and other products.

Summer increase in prices for bakery products

July 2023 was marked by the last serious increase in the prices of bakery products in the whole country. According to the analysis of data from the Ministry of Economy, average prices for bread, buns, and pies increased by an average of 10-15% compared to the previous month. These dynamics indicate difficult times for consumers and the food industry.

Statistics for July 2023, regarding the average prices of the most popular bread products:

Wheat bread from high-grade flour - UAH 41.9 (in Kyiv - UAH 62.6);

Rye, rye-wheat bread - UAH 36 (UAH 41.1);

Baguette (500 g) - UAH 22.4 (UAH 22.7).The rise in bread prices is a serious problem that requires attention and action from the government and the public. This can be a challenge for buyers, which may need to be tackled by implementing measures to support the agricultural sector and develop alternative ways of food production