TSN reports the authorities acknowledged that Kyivretailers provoked the panic. Kyivkhlib indirectly through someonesaid that the bread prices may rise. Capital grain monopoly spat onpublic concern and did not explain anything, thus heating up thehype. When they came to their senses, the government officials andretailers have begun claiming that there is no reason for a pricerise on the #1 product.
These statementswere denied by farmers. According to them bread prices need to riseand it will be around 10%.
After theelections, the economy is almost free from political pressure. Thegovernment will no longer hold back prices artificially and theywill be formed exclusively by economic laws.
Bread is just thetip of the iceberg. In the nearest future the durable goods are atrisk: home appliances, cars, especially imported.
The hryvnia felland the dollar hiked right after the elections. This week it hasreached a three-year maximum - 8 hryvnia 19 kopecks. Last time ahigh like this was recorded in November 2009. The National Bank wasartificially maintaining the hryvnia rate before the elections inorder not to hit the regime's ratings but there are other causesfor the loss of money:
- The decline insteel prices in the world markets, and therefore, the loss ofexport;
- high prices forRussian gas which is paid for in currency;
- problems withthe IMF, and consequently a lack of foreign currencyloans.
Hryvnia willcontinue its decline further though it will not be radical, theoptimistic experts say.
However, expertsadvise to keep deposits and take out loans in hryvnia - the banksare still offering reasonable rates. The interests of the citizens,bankers, and politicians are the same here.
However, theUkrainian economy dictates harsh perspectives. Unchecked byelection campaign, the government will soon have to raise utilitytariffs, the experts say.