Official inflation in Ukraine is decreasing because it is calculated based on a consumer basket of cheap basic goods and services, many of which either barely increase in price or are subsidized. At the same time, real expenses for Ukrainians are rising: everyday food, clothing, medicine, and paid services are becoming significantly more expensive.
Source: OBOZREVATEL
As explained by the founder of the First Kyiv Investment Club, Ivan Kompan, the drop in inflation to 8% in December does not mean that goods and services have become cheaper, but only that their growth has slowed. Official statistics are based on the consumer basket approved by the Cabinet of Ministers, which includes food, non-food goods, and services.
However, the structure of the basket is often disconnected from real life: for example, the norms assume minimal consumption of meat, fish, and clothing, while alcohol and additional paid services are practically not accounted for. Utility tariffs, transport, healthcare, and education are partially subsidized, which also lowers the official inflation rate.
As a result, the state can show a slowdown in price growth on paper, while people’s real expenses, especially on protein products, medicine, transport, and clothing, continue to rise.
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