The abolition of state regulation of prices for food products since July 1, was one of the factors of inflation. So says the head of the NBU Council Bohdan Danylyshyn.
According to Danylyshyn, the key factor in the dynamics of consumer prices now is the increase in the cost of production. “By the end of 2016 the growth of producer prices amounted to 35.7%, with a lag of 6-9 months – this was broadcast to the increase of consumer prices”, – he wrote on his page in Facebook..
The head of the NBU Council considers that the situation is complicated by the fact that from 1 July in accordance with the decision of the Cabinet of Ministers abolished price controls on food. “As in our country in the structure of the consumer basket high proportion of expenditure on food, the deregulation of food prices made a significant contribution to inflation”, – he said.
Danylyshyn believes that the government’s decision on deregulation of prices on food products was premature. “In conditions of monopolized economy of Ukraine, it has led to an increase in the rate of inflation. Consider it expedient to resume the State price administration, which at the stage of Ukraine’s economy transition from recession to growth would maintain control over pricing, which is currently very one-sided market has a specific effect, and the growth of consumer prices”, – said the head of the NBU Council.
According to him, in Ukraine there is a significant monopolization of the markets. “As of mid-2016 42% of markets in our country was monopolized, 11% of the markets worked in terms of administrative or natural monopolies. Monopolies and oligopolies have developed in the energy sector (65%), in transport and communications (82%). Monopolists abusing their position, use tools to maximize profits by raising prices and tariffs. This is reflected in the inflation”, – said Danylyshyn.
The influence of the NBU on inflation significant, but it is not decisive and the actions of the regulator other comprehensive measures will not give the desired effect, said the head of the NBU Council.
According to the state statistics service, consumer prices in Ukraine in October compared with the previous month increased by 1.2% since the beginning of the year inflation amounted to 11.5%.