"Currently, the inflation rate is low not because of the government’s efforts but because of the fact that we are nearing a milestone. After that, we’ll face massive plant shutdowns and a serious food shortage," he said at a press conference.
"Now the balance of supply and demand is maintained through the gradual decrease in supply," he added.
The expert further explained that the root of the disastrous situation is in the large debt load of Ukrainian companies. With the ongoing hryvnia devaluation against the US dollar, companies and sellers are at risk of increasing their debts. To avoid that they would have to increase prices.
"This autumn, the food prices will be based on the loans farming companies received in February and March. Autumn is the deadline for paying them off. As a result, despite this year’s heavy crop, the prices of all food products will rise," Gavrilechko added.
Recently, the inflation rate in Ukraine reached over 60 percent. The weakening national currency devaluated people’s income which sits at an average of $510 a month.
