The cost of food in Ukraine continues to rise sharply and is nearly reaching the price levels in European Union countries. Some products are already being sold at higher prices than in neighboring states. For example, butter in Ukraine costs 20–25% more than in Poland. This data is included in the July “Inflation Report” by the National Bank of Ukraine.
This is reported by Finway
Reasons for Price Increases and Changes in Consumption
According to the National Bank, since 2020, food prices in Ukraine have increased by more than 35%, while overall inflation has been around 25%. The main factors contributing to the price increase have been global crises — the pandemic, war, energy instability, logistical disruptions, as well as local circumstances: unfavorable climatic conditions, rising production costs, and shortages in certain segments of the agricultural sector.
Food products account for nearly 40% of the structure of consumer spending for Ukrainian families, so even a slight increase in prices significantly impacts their budgets. Over the past nine years, from 2016, food prices in Ukraine, when converted to euros, have risen by 79%. In comparison, in EU countries, the increase has been 46%. At the same time, the price increases for food are not uniform across different categories.
Comparison of Specific Product Categories and the Role of Imports
Some products in Ukraine remain more affordable than in Europe. Bread, cereals, vegetables, and fruits have lower prices due to cheaper labor, raw materials, and less costly logistics. Sunflower oil is also nearly a quarter cheaper than in Poland, thanks to a developed domestic production sector.
However, butter now costs more than in Poland, which is linked to higher production costs and insufficient government support. A similar situation is observed with pork and dairy products, which have become more expensive due to the weakness of livestock farming and the lack of effective government subsidies.
“At the same time, poultry meat and eggs in Ukraine remain cheaper. This is a result of large-scale industrial production, vertical integration, and the high efficiency of major agro-holdings.”
After a certain decrease in prices in euros due to the weakening of the hryvnia in 2023–2024, by early 2025, the trend of rising food costs resumed, and the gap with European prices is quickly narrowing.
Among the main factors restraining further price increases is the purchasing power of the population. Upon reaching a “psychological threshold,” Ukrainian consumers switch to cheaper products or reduce their consumption volumes. Conversely, the weak development of certain sectors, especially livestock farming, pushes prices upward.
An important factor remains the tax burden: in Ukraine, the value-added tax on food products is 20%, while in Poland it is only 5%, and some products are completely exempt from taxation.
The strengthening of trade relations with the EU, particularly within the framework of the free trade zone agreement, has contributed to the growth of food imports. This partially leads to an increase in domestic prices, which are aligned with European indicators.
According to estimates by the National Bank, in the first half of 2025, imports of certain goods significantly increased: pork — by 4.4 times, milk — by 1.6 times, cereals — by 48%, vegetables — doubled, and apples — by 8 times. The increase in imports is related to both high domestic prices and limited supply in the market.