Blackout inflation: which products will rise in price first in the event of prolonged power outages

Russian strikes on Ukraine's energy facilities could cause serious power outages, which in turn threatens the food industry and could lead to higher prices for basic products. Experts predict that if power outages continue regularly, prices for dairy products, meat, eggs, and bread could rise by 10-30%. According to representatives of agricultural associations, the situation may be similar to the winter of 2022-2023, when producers used backup generators, which complicated production.

Source Telegraf

At the same time, the executive director of the Ukrainian Potato Producers Association reassured that prices for “borscht ingredients” would only increase slightly, as Ukraine actively imports vegetables from abroad. Small producers may face greater difficulties due to energy problems, while large companies have already adapted to them by installing autonomous generators.

In addition, restrictions on chicken exports to the EU may affect the cost of this product in Ukraine. However, given the open borders and imports, experts believe that sharp price increases may be restrained. The role of state regulation in controlling food prices remains important, so the actions of the Antimonopoly Committee are important to prevent speculation during this difficult period.