July 10 2007, 09:07

Vegetables instigated record inflation for June in Ukraine

According to the data of State Statistics committee, the inflation level was 2.2% in June, and 4.2% according to the results of the half year in Ukraine. It is a record high level for June inflation recorded in Ukraine in the previous years. Usually the prices stabilize or even decline a little in June, mainly due to the beginning of harvesting season when cheaper food products of new harvest enter the markets.

Vegetables mainly provoked the record inflation in June 2007; they got 34.8% more expensive comparing to May. To the opinion of the analysts of ""Agrooglyad: Vegetables and Fruits", the price growth for vegetables in June was caused by drought observed in many regions of the country in May-June. As a result, the harvest of early vegetables and fruits reduced.

We'd like to also point out that this season early vegetables entered the markets 1-2 weeks earlier than usually and almost 3 weeks earlier than in 2006. The price decline for vegetables usually happens in June; it was recorded in May this year. The early ripening of vegetables led to the earlier finished sales season, and the medium and late vegetables have not ripened yet by that time. This fact resulted in the temporary deficit for vegetables on market and rapid price growth.

To the opinion of the "Agrooglyad: Vegetables and Fruits" analysts, the prices for produce will start declining late July; the period of the price decline for major vegetables will last till the end of September. The prices for potato, root crops and onion will start declining starting from the active harvesting in September-October. The prices for cabbage will start declining in October-November.