How exchange rate will jack the prices up in Ukraine

In case of 16 UAH/USD rate petrol will cost 17.2 UAHl, prices on medicines have already started to rise, and restaurants and clothes stores are on hold for the time being

The cost of dollar in the Interbank rose up by the allowed by the National bank 5% — up to 15.20 UAH/USD on Friday. According to experts, dollar rate is prone to 50–60 kopecks weekly growth, although the National Bank is expected to hold the rate in the area of 15 UAH/USD.

According to the calculation of director of consulting group A-95 Sergey Kuyun, the price of a liter of А-95 petrol, the average price of which is15.79 UAH/l, will rise up to 17.20 UAH/l with the rate16 UAH/USD, and of diesel fuel — up to 16.85 UAH/l. With the rate of 17 UAH/USD filling stations will charge 18 UAH/l for petrol, and 17.70 UAH/l for diesel fuel. “The price rise will not occur momentarily, it will stretch for the period of 10–14 days”, — explained Kuyun.

FOOD AND CLOTHES

“Imported food products will get more expensive proportionally to dollar rate. The prices of the domestically produced ones will grow when the cost of petrol has grown”, — told general Director of Ukrainian Trade Association Igor Kyshko to “Vesti” newspaper.

The situation with clothes and footwear is much more complicated. The retailers are afraid to raise the prices of the already existing stock, as Ukrainians are not in a hurry to revamp their closets for the actual prices. Thus, winter collections will be sold at old prices.

MEDICINES

Prices of medicines have already risen partially. “Now the companies working with the importers will allow for bigger risks, that is, with the rate of 20 UAHUSD instead of 14 in mind,” — says the Head of the Pharmaceutical Workers Union Konstantin Kosachenko. Drugs produced at home are still sold at old prices on the account of domestic material.

RESTAURANTS

Restaurants will function at a sacrifice, assures us the Secretary of the Associations of Restaurants Olga Nasonova: “The prices have already risen by 30% in the middle of March. It is unprofitable to raise them even higher, as the restaurants will lose the last clients, so, we will not change the prices by the end of the year”.

TRAVEL

On Monday all travel agencies will recalculate the prices of all tours in accordance with the 15.20 UAHUSD rate. E.g., if a tour to Egypt cost $1106, or 14 934 UAH yesterday, then with rate of 15.20 UAH it will cost 16 811 UAH today. Domestic hotels will not charge more, says the Head of the All-Ukrainian Association of Travel Agencies Ihor Holubakha.

REALTY

Realty trade has not felt the exchange fluctuations yet. In theory, in the course of devaluation the price of dwellings in UAH will rise, and the price in dollar – fall, but such a phenomenon is not yet observed. “Everything will depend on the developers behavior. If they keep on raising the prices (depending if their building materials reserves were made before or after the rise of the rate), the secondary market will follow them”, — says realty market expert Irina Lukhanina.