Cashing in on war: how entrepreneurs illegally raise food prices

During martial law, the state controls how entrepreneurs comply with the law in the formation, establishment and application of state regulated prices for certain goods. Some entrepreneurs, despite the ban, still raised prices for products of social significance.

During the month, prices rose for food, essential goods and fuel. There were other violations as well. This was reported in the press service of the State Food and Consumer Service.

How Entrepreneurs Break Rules During War

The State Food and Consumer Service notes that price observations were carried out from February 23 to April 4. In particular, based on reports from consumers about rising prices for food, essential goods, fuel, the sale of alcohol, the lack of payment for cashless transactions and other violations of entrepreneurs.

After price observations, the service concluded that the prices of almost all food products increased significantly from late February to early April. In particular, there is the following data:

• for wheat bread the price increased by 28.5%;
• rye-wheat bread – 12.5%;
• buckwheat – 25.5%;
• pasta – 24.5%;
• sunflower oil – 11.9%;
• onion – 27.2%.

The service noted that entrepreneurs were forced to return economically justified prices, and also eliminated other violations during these checks.

How much will we pay for food after the war

Earlier, Segodnya was told whether Ukrainians should expect inflation. Oleg Pendzin, an expert and a member of the Economic Discussion Club, spoke about this.

Pendzin explained that food prices in Ukraine are formed from the cost of agricultural raw materials in international markets. Before the war, domestic prices in Ukraine corresponded to those in the world, because we were a large agricultural exporting state.

However, the country has now restricted exports, and all the grain harvested last year remained in Ukraine. Now prices in Ukraine will not meet those in the world. And a significant rise in prices will be in those markets where we used to supply our products.

But in Ukraine everything will be more or less normal.

“Ukraine is fully provided with food for several years, if nothing changes, if exports stand dead and everything remains as it is. Prices will not rise much, there will be a maximum of 10-12% growth. Locally, it is quite possible that there will be shortages associated logistics.And where it will be calm, where there will be no hostilities, everything will be fine“, – said Pendzin.

We also wrote which products in Ukraine will rise in price in the near future, and how much products cost in Italy and Germany.