Information & Chat > The Expatriate Life: Living in the FSU, Asia or Elsewhere
Cost of living in Ukraine
JeanClaude:
--- Quote ---Not too surprising given their government and the fatalistic stoicism of the population. It's easy to see why the Holodomar happened since they apparently just intend to follow, herd-like, in whatever direction the government tells them.
--- End quote ---
Other then peacefull protest, i dont see much difference in any other country in the West
andrewfi:
--- Quote from: JeanClaude on August 15, 2010, 05:43:57 PM ---
--- Quote ---Not too surprising given their government and the fatalistic stoicism of the population. It's easy to see why the Holodomar happened since they apparently just intend to follow, herd-like, in whatever direction the government tells them.
--- End quote ---
Other then peacefull protest, i dont see much difference in any other country in the West
--- End quote ---
Is true.
But yes, I think we can safely discount the observations of our 'on the ground observer' if that observer is noting 200% increases in prices of food.
Ukraine consumer price inflation in 2009 was, as I recall, about 16% and is budgeted to be around 9% for 2010. So, prices will have gone up noticeably and some people's incomes will have fallen but there is no hyperinflation in Ukraine (often suggested to be cumulative 100% over 3 years).
TrevorM:
During this year's annual sojourn to the Crimea to visit wifey's parents, it seemed to use that food prices were pretty similar to the UK, petrol half the price (but that's down to our thieving government and the amount of tax they put on it) and wifey bought a winter coat for £140, which again would be similar to the UK for the same quality.
MND:
Nat says that in her town south west of Ukraine everything has gone up between 2 to 4 times the price it was this time last year property is cheap but food, clothing, postage and many other things have skyrocketed.
So dont believe everything you read that Ukraines inflation is aroun 9-16% as she is there now and can see the difference its alot more than that.
andrewfi:
OK, here's a simple sanity check for you. ;)
How much, and in what direction, has the Ukraine/Euro exchange rate shifted in the past 12 months?
If the Hryvna is now worth about 25% of what it was a year ago then your on the ground observer might be right. if less then she is not. This is simple. Exchange rates are about the relative price of money. If Ukraine has had 200% inflation (hyperinflation) then the exchange rate will have plummeted against the Eurozone where inflation is pretty low.
This is because if it takes 4 hryvnia to buy what cost 1 hryvnia one year ago then the value of the currency to investors and banks using, for example, the Euro will have fallen by the same kind of amount and so the exchange rate will have tumbled, assuming all else is equal.
Simples.
Here, to save me looking further is a piece from Wikipedia about Hryvnia/US Dollar. Not such a good comparison as the US DOES have inflation and the dollar is pretty volatile at the moment but you can see that in the period in question the ratio was actually pretty firm. Thus we can know that inflation is NOT at the levels suggested by our on the ground observer.
--- Quote ---In the period from 21 April 2005 through 21 October 2008 the official exchange rate remained stable at around UAH 5/USD 1. Since then, the hryvnia abruptly lost one-third of its value, dropping to around UAH 7.5/USD 1 by mid-December 2008.[3] The hryvnia remained relatively stable through most of the first half of 2009, being valued at roughly 7.5-8 UAH/USD 1 over this period.[7] However, the hryvnia began a gradual depreciation in the 3rd quarter of 2009 to reach just under 9 UAH/USD by September, although this was followed by a quick appreciation to around 8.25 UAH/USD by the start of October.[7] Through the 4th quarter of 2009 and the start of 2010, the value of the hryvnia has held relatively steady at approximately 8.0-8.25 UAH/USD.[7]
--- End quote ---
http://en.wikipedia.org/wiki/Ukrainian_hryvnia#Exchange_rates
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