Politics 2023-11-15T05:58:24+02:00
Ukrainian news
Last Year’s Two-Digit Inflation Rate Resulted from Government’s Mistakes, – Lovochkin

Last Year’s Two-Digit Inflation Rate Resulted from Government’s Mistakes, – Lovochkin

government, price, Serhiy Lovochkin, Inflation levels, OPFL
Serhiy Lovochkin. Photo by OPFL.
Serhiy Lovochkin. Photo by OPFL.

The price surge for goods and services over the past twelve months has led to a decrease of basic social standards in real terms, including subsistence minimum and minimum pension, MP Serhiy Lovochkin stated commenting on the latest inflation data.

"The current rise in prices has been the most significant since the spring of 2018. Over the past twelve months, the inflation rate has reached 10.2 percent, inconsistent with any forecast. Since the beginning of the year, the National Bank has revised inflation forecast for 2021 several times, having increased it from 5 to almost 10 percent. This situation has mostly resulted not from objective reasons but from the government’s mistakes," the politician said.

To support his statement, the MP cited the data about categories that grew most in price over the past twelve years, i.e., utility fees that are regulated by the government. The gas for the population got by 96 percent more expensive, and electricity by 36.6 percent. Foods have gone up significantly, by almost 12 percent compared to August of last year.

"As of today, our inflation levels are worse than in all EU countries and the European CIS members. Our western neighbors had seen the price increase between 3 and 5.5 percent, and it signifies that the global food price increase is not the key drive behind Ukraine’s depressing performance," he said.

According to the politician, the government has all the levers to help the National Bank curb the rise in prices.

"Revision of the pricing policy on the gas market, reduction of VAT for food staples, increase in subsidies to the agricultural sector, termination of economically unjustified increase of excise taxes on excisable goods — all these are in the hands of the Cabinet of Ministers and the parliamentary mono-majority. The application of these measures will lead to a decrease in inflation down to the average European level. Ukraine needs a government and a parliament that know how to use their powers for the benefit of the people, not to their detriment," Lovochkin summed up.