What happened to 4000 hryvnias in 2015?

Author : Pravda Economichna

Source : 112 Ukraine

Food, utilities, medicine, and transport: can average Ukrainian pay for them after devaluation of hryvnia and inflation?
10:00, 10 February 2016

Read the original text on Economichna Pravda.

Why 4 thousand? The State Service of Statistics says that the average household spends on food 51% of its income, 36% on non-food costs, including transport, about 10% go for utility bills. Let us calculate what happened with these 4 thousand during 2015 year. We show how money “become cheaper”, and it is not only due to inflation, but due to devaluation as well. After all, the first does not include many of the costs of the middle class that are notable in the national currency devaluation: vacations abroad, imported products, electronics.


After New Year the State Service of Statistics released the annual consumer inflation. In 2015, it amounted to 143.3%. The main item of expenditures was food. According to statistics, an ordinary Ukrainians spend half of their income on food. Over the past year, this mandatory cost item increased by 41.5%. This means that for the same 2 thousand UAH ($ 77), you can now buy 30% less food than a year ago. However, the prices on food products grow unevenly. In 2015, price for meat and dairy products increased less, most of all vegetables, fruit and fish rose in price, which are mostly imported and are highly dependent on the dollar. For example, in autumn, there was a real panic with vegetables - prices have risen by 60-70%.


Utilities take about 10% of the standard budget. It was about 400 UAH ($ 15) per month until it rose in price in the spring of 2015. Then the electricity, hot water, and heating rose by an average of two times. This means that for the same 400 UAH you can pay only half of the exposed utility bills.

Related: Ukraine: does it make any sense to invest in a declining economy


200 UAH ($ 8) go for public transport. In February prices for public transport in Kyiv went up twice. "Average" Ukrainian, according to statistics, does not travel by car.


State Service of Statistics said that drugs in 2015 grew by 34%. It is close to the truth. According to a specialized online resource, the average price of one package of foreign drugs in November 2015 cost 110 UAH ($ 4) - this is 33% more than the year before. According to the State Statistics Service, 150-200 of 4 thousand UAH are spent on health, mainly for drugs. Thus, you can buy quarter less medication for this money. According to experts, in 2015 the sale of drugs have fallen by 25% in pharmacies.

Related: Stratfor: Ukraine's slow recovery and Russia's economic decline

Other spending

The remaining 1,200 UAH ($ 46), which, according to the State Statistics Service, the average Ukrainian spends on other expenditures, have lost 25-30% of its purchasing power.

Related: Predictions for 2016: Ukraine's ten expected economic shocks


If you are not an ordinary Ukrainian, and you are not fighting for survival, and you plan to spend 4 thousand UAH on the purchase of goods on the Amazon, buy a ticket to Europe or take this money on a journey to the running costs, you have to remember that the hryvnia has lost 35% of its value to the dollar in 2015.

Related: Russian sanctions against Turkey fuelled inflation in Russia - experts

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