How not to panic due to rising prices?
The media are quite actively promoting this topic, and the concern of millions of Ukrainians is understandable. Food security is really important, especially in times of war. But there’s no point in stressing yourself out over rising prices. Let's consider how prices are formed and what to do to fit within the family budget.
Rising prices are not the whim of sellers
Stores cannot set price tags from the ceiling; each type of product has its own premium limit. The existing difference in prices for the same products can be explained by the volume of supplies (large, medium, small wholesale, direct deliveries or through an intermediary). Product manufacturers also have their own arguments when they are accused of raising prices. This is the cost of production, depending on a number of factors (the cost of growing the crop, its storage, transportation). The markup also applies: you need to provide for yourself and develop production. But its value also depends on many components. In any case, the change in the cost of a product is an objective, not a subjective reality.
Seasonality factor
Consumers cannot in any way influence currency fluctuations or the costs of agricultural enterprises. But why not take advantage of seasonal price fluctuations? This mainly applies to vegetables, but eggs, meat and milk also have peak months. So, you can get your fill of cucumbers in the first half of summer; citrus fruits are much cheaper in winter. Milk prices begin to rise in the fall, when milk yields decrease; the price of eggs traditionally peaks at Easter. However, for many product categories, seasonality is not so important: if you compare, how much the Pit Bull energy drink costs now and how much it cost a year ago, the difference will be minimal or absent altogether.
Yield
It depends on weather factors, But in Ukrainian realities there is another important component: a significant reduction in cultivated areas. Producers are trying to compensate for this by moving cultivation to safer regions, but the soil, logistics and even climate there are different. A decrease in yield means rising prices and the emergence of imports.
How to survive in the face of rising prices
Cutting expenses is unlikely to help save the family budget. If you see how, for example, onions are rapidly becoming more expensive, calculate how much you need for a month. In this case, you will know exactly how much to buy so as not to overspend. Do this with all products. If you have made a list of everything you need, except for the names, add the quantity. Buy in large stores, for example, in the Maudau.com market, where the price tags are lower. Do not buy cereals for a year in advance: a month or two of stock is enough. It is better to use the saved money as a financial cushion. Finally, whenever possible, buy local products, they are often cheaper and support local producers.