The main drivers of price increases are tariffs, logistics and excise duties.
Over the three years of full-scale war, Ukrainians have actually found themselves in a new price reality: basic expenses have increased by more than half, and individual categories – many times. The strongest blow fell not on products, as one might expect, but on electricity and fuel – they became the drivers of the general price increase and dragged the cost of living in general. This is evidenced by data from the Center for Economic Strategy, Dengi.ua writes. The PromPolitInform portal reports.
Electricity
Since 2022, electricity tariffs have increased almost threefold – by 178%. For the population, they were revised twice: in 2023, the cost increased to UAH 2.64 per kWh, and in 2024 – to UAH 4.32.
The authorities explain the price increase by the large-scale destruction of the energy system due to shelling. This required additional costs for importing electricity and restoring infrastructure.
At the same time, tariffs for gas and central heating remain practically unchanged thanks to the moratorium in force since 2022. However, as part of cooperation with the IMF, Ukraine must gradually abandon this practice.
Fuel
Fuel prices almost doubled during the war – the increase was 98%. Until 2022, a significant part of the fuel came from Russia and Belarus, but after the invasion, these supplies stopped.
Additional pressure on prices was exerted by strikes on the oil refining infrastructure and the complexity of logistics. New supply routes turned out to be much more expensive. Currently, the market is also affected by tensions in the Middle East, in particular between the USA and Iran.
Tobacco products
Cigarettes have more than doubled in price – by 122%. The main factor is the gradual increase in excise duties as part of Ukraine’s European integration course.
Food
Generally, food prices increased by 74%. The fastest-growing items were fruit (+153%), fish and seafood (+104%), and butter (+95%).
The reasons include crop failures in some years, losses in the agricultural sector due to the war (in particular, occupation and mining of land, especially in the southern regions), as well as an increase in the cost of production and logistics.
Earlier, according to the results of its research, Deloitte Ukraine reported that 84% of Ukrainians’ spending is on essential goods and services.
It was also previously reported that Ukraine maintains one of the lowest tariffs for natural gas for the population in Europe. In particular, the cost of a cubic meter for Ukrainians is 14 times lower than in Sweden and almost half that of Hungary.
