Going for the record! The lives of citizens in Ukraine have crossed the poverty line
RIA Novosti
Inessa Drugova, RIA Novosti Ukraine
Incomes of Ukrainians continue to rapidly melt. According to official data, inflation for the first eight months of this year amounted to 38.2%, while food prices rose by 32.7%, while housing and utilities more than doubled — 122,6%. The government has decided to bring happiness to Ukrainians and September 1, raised social standards. Now living wage in Ukraine will amount to 1330 hryvnia, pension and state employees will grow by 13%. And this despite the fact that inflation in 2013, when it last increased the cost of living http://rian.com.ua/video/20150921/373993718.html” rel=”nofollow”>70%.
Can you survive for the money, which the Ukrainian government believes is sufficient for life and when it begins to grow real incomes of Ukrainians, the expert said at a press conference in http://rian.com.ua/” target=”_blank” rel=”nofollow”>RIA Novosti Ukraine.
The CPI basket is outdated
Methods of forming the consumer basket, on which is formed the cost of living has not changed in Ukraine since 2000. And today, the set looks ridiculous.
“The problem is that the prices are very considerably grew, but the indexation of the subsistence minimum was done. There was not even a living wage adjustment for past inflation, not to mention projected for next year. And this led to the fact that the approved subsistence minimum is less than the actual twice, “explains head of the research Department, living standards, Institute of demography and social studies of NAS of Ukraine Lyudmyla Cherenko.
According to her, on the first of July this year, the official subsistence minimum was less than 1 200 hryvnias, while the actual calculated prices of the market the Ministry of social policy, was more a twice — 2,5 thousand hryvnias. If you take the officially prescribed subsistence level, people living below the poverty line in Ukraine, in 2014 there were less than 7%.
“But if we talk about the actual subsistence minimum, 28% of the population live below this level“, — said Lyudmila Cherenko.
For example, the U.S. living wage is calculated normative-structural method, where spending on food detailed, and the food part is one third of the consumer basket. In Ukraine, the share of products in the consumer basket already exceeds two thirds.
To avoid such distortions, the experts propose to regulate only the food basket in accordance with the recommendations of the Ministry of health, and the remaining element to determine the percentage.
Products in a basket to stretch the legs
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Value Stock Images/EAST NEWS/
The head of the functioning of agricultural markets, the agrarian Union of Ukraine Love Pankratova said that the set of 32 basic food products included in the consumer basket, now costs 750 hryvnia. But there are products which have been approved by resolution of the Cabinet. If we add to these 32 names, and their, the cost of the food component of the consumer basket will increase to 850 hryvnia.
“And this is a very modest set of products, there is not a question about different types of vegetables and fruits, there is not considered the possibility of eating out. In addition, the standards products is minimal. If not take out the minimum standards approved by the decree 656 of the Cabinet, and the scientifically reasonable norms of the Ministry of health, this set of products will cost 1000 hryvnia. Almost all the cost of living to spend on products. But that’s impossible, because there are utilities, there are rides to work, and I have to dress, “says Love Pankratova.
What will happen to prices
Already the most socially vulnerable segments of the population who receive the minimum wage, trying to survive, as reducing diet. But, unfortunately, the prices of products will not be http://rian.com.ua/kiev/20150920/373971046.html” rel=”nofollow”>to stand still.
However, in the near future, experts of the sector don’t expect the growth of prices for bread that is over a year and a half and went up by 1.7 times. This year Ukraine’s wheat harvest exceeded all expectations and shortage of raw materials are not expected, but experts warn that prices could rise by the end of the year, because the lion’s share of the cost of bread is the cost of energy.
Buckwheat and rice in the near future also added to the price. Buckwheat this year, sowed in two times less than in 2012, and rice Ukraine exports almost completely. Prices for other grains will be stable.
In September of this year, the price of borsch set is 32 hryvnia, but the reasons for its growth there. In the near future it is expected even some http://rian.com.ua/analytics/20150911/373519127.html” rel=”nofollow”>the sagging prices of cabbage, beets and carrots.
As this year’s sunflower crop has pleased farmers, the experts also see no reason for growth of prices for sunflower oil, especially since 90% of it is exported. On the stability of prices in the country remaining 10%, according to experts, should be taken care of by the government.
Sugar prices will rise only by the end of December — beginning of January, despite the fact that this year collected less sugar beet than in previous years, we still have a surplus of this product.
Rising prices for livestock products — meat, milk and eggs — is constrained by low purchasing power of the population. For the last time milk prices have increased by 30%, meat has risen in price in 1,5 times, eggs — by 1.6 times. According to the Love Pankratova, breeders and manufacturers cut production to balance supply and demand. In livestock farms under the knife is 5-8% of cattle. Experts expect that the price of meat and dairy products will rise slightly, but their quality will be reduced in the sausages will be less meat and dairy products — milk, since producers will move from premium class to economy class to reduce costs of production.
In addition, from 1 January next year, will earn the economic part of the Association Agreement of Ukraine with the European Union, and the Ukrainian market will be overrun by cheap products from Poland, Lithuania, Germany. Their quality will be low, according to prices, but the producers at least will honestly indicate the packages.
Economic expert Vsevolod Stepaniuk warns that the Ukrainian the prices for products depend on world markets. And if their prices will move up accordingly http://rian.com.ua/analytics/20150916/373790677.html” rel=”nofollow”>more expensive products within the country.
The Cabinet is making fun of people
Economic expert Vsevolod Stepaniuk sure that in order to survive, a living wage should be 5 thousand hryvnias and calls the mockery improving social standards at 13%.
“We have a constitutional rule that it is impossible to lower social standards. Even according to the state statistics Committee, in 2013 the inflation rate exceeded 70%, the state is obliged to index the minimum social standards at the 70%, not 13%, as is happening now. It’s not indexing, as a SOP, “said Vsevolod Stepanyuk.
The President of the Ukrainian analytical center Oleksandr Okhrimenko believes that the government deliberately lowers the official subsistence minimum, not to review the minimum pension and wages and not output them on a real level.
“Today is such game: on the one hand we see a very low cost of living and everything is fine, but on the other hand, everyone understands that 100 hryvnia is not even money in Ukraine”, — said Alexander Okhrimenko.
The expert argues that in the past year and a half, you can bring a living wage and pensions in Ukraine on a real level.
“You need only the desire, but it is not. To date, such a low bar gives another advantage: very easy to control poor people, and very hard to manage rich. So I raise a hundred hryvnias, and everything is normal“, — http://rian.com.ua/story/20150916/373771127.html” rel=”nofollow”>said Okhrimenko.
According to him, it is not necessary to count on appreciable growth of incomes in the near future.
“The crisis is not eternal, but even if all stabiliziruemost next year, and the business will begin to revive in 2017, it is not until 2020-2023 years really start to feel the growth of incomes”, — predicts Okhrimenko.
Less optimistic forecasts Lyudmila Cherenko:
“The situation of recent years shows that social processes now going after economic with very little lag, and the lag is shrinking. Therefore, if projections are correct, in 2016, there will be economic growth, in 2017 the real income rate exceeds the growth rate of GDP in 2016. But this, of course, very small growth. A radical increase in income too early, and I did not dare even to speak about significant growth immediately after 2020. The situation can be corrected only an economic breakthrough — the leap. Unfortunately, we are similar in our history was not observed. The sharp improvement in the standard of living is not expected“.
But if will gradually grow economy (annual average for 3%, as the government promises), then by 2020 we will reach the 2007 level, http://rian.com.ua/infografika/20150911/373525280.html” rel=”nofollow”>below which are.
