Ukrainians spend 42% of income on food

Ukrainians spend 42% of their income on food, the National Scientific Center Institute of Agrarian Economy says, referring to the United States Department of Agriculture (USDA).

"According to the USDA, every Ukrainian in 2018 paid US$858 for food and non-alcoholic beverages on average. The share of food products in the total structure of consumer spending was 42.2%," the Scientific Center's press service said on February 4, referring to a study by the USDA, which regularly monitors household spending in more than 100 countries.

The study confirms the provisions of Engel's law: as the household income increases, the share of income spent on food decreases. At the same time, in absolute terms, food expenses grow. The more developed and rich the country is, the smaller the share of household spending for food.

The United States, Singapore, the United Kingdom, Ireland, Canada, Switzerland, Australia, and Austria top the ranking since their residents spend on food less than 10% of their income, while those in Germany, the Netherlands, Finland, Qatar, Belgium, and South Korea – up to 15%, the report said.

Households' food expenditures in Poland, Slovakia, Hungary, Bulgaria, Israel, Uruguay, Kuwait, China, Turkey and other countries account for 16%-25% of their income, whereas the share is about 30% in Belarus, Georgia, Russia, Uzbekistan, as well as in Jordan, India, Macedonia and Paraguay.

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Ukraine ranked 93rd, outrunning Uganda (share of food expenses is 44.2%), Kazakhstan (44.9%), Angola (48.6%), Bangladesh (53.5%) and Nigeria (59.0%), which is last in the ranking.

The State Statistics Service of Ukraine says one household in 2018 spent UAH 3,963 (US$158) per month on food. The most money was allocated for meat (UAH 928/US$37), bread (UAH 576/US$22.97), milk, cheese and butter (UAH 575/US$22.93), vegetables and potatoes (UAH 497/US$19.82), while least of all – for soft drinks (UAH 218/US$8.69), eggs (UAH124/US$4.94) and vegetable oil (UAH 117/US$4.67).

According to USDA, the cost of food for one person in Ukraine in 2018 amounted to UAH 23,338 per year (at the current exchange rate), while UAH 22,538 (US$899), according to the State Statistics Service.

As UNIAN reported earlier, consumer inflation in Ukraine in December 2019 slowed to 4.1% year-over-year (against December 2018), which hit a six-year low.

The largest price hike in December 2019, in annual terms, was recorded for railway passenger transport (19.2%), fruit (by 18.8%), hot water and central heating (14.4%), education (13%), and alcoholic beverages and tobacco (13%).