Food Prices Add to Ukrainians’ Pain as Russia’s War Rages On

The prices of eggs, vegetables and fruits spurred inflation to a six-year-high in Ukraine, while companies predicted a gloomy future for businesses hurt by Russia’s war.

Food prices drove up annual inflation in October to 26.6%, beating economists’ estimates, according to data published Thursday. Egg producers and farmers say the destruction brought by Russia’s invasion may further increase prices.

“If we fail to renew chicken livestock, there will be an even worse disaster next year,” Oleg Bakhmatyuk, owner of UkrLandFarming, one of the largest egg producers in Europe, told news website Ekonomichna Pravda. “There will be no eggs.”

Still, the central bank said last month that inflation remains below its expectations and is “quite moderate” given the war, which has left tens of thousands of dead, crippled the economy and more than a third of the nation’s power infrastructure.

Prices of eggs as well as vegetables and fruits have spiked this fall given a shortage caused by the conflict and the government had to reach an agreement with producers to stabilize prices.

Inflation was also driven by war-related logistics issues and devaluation of the hryvnia, which increased prices of imported goods such as bananas.

Still, the central bank expects inflation to peak at the end of the year and ebb throughout 2023. Price growth will probably slow to 20.8% next year and ease further to a single-digit level in 2024, according to its base-case scenario.

Tags: prices, eggs, Ukraine