What is driving inflation the most right now
What caused the significant increase in industrial inflation? Components for Ukrainian manufacturers are becoming more expensive, exports are growing significantly slower than imports, the cost of human resources is increasing, major problems with electricity and logistics, in particular, lead to a decrease in the utilization of production capacities and a decrease in the effect of scale, in the end, a worse harvest than last year is predicted - these are all factors, which negatively affect the economic situation in the country.
So, in particular, before the large-scale aggression, the utilization of production facilities was 75%. At the end of last year, this figure fell to 45%. Now the occupancy rate is 38%. 35% is predicted in winter. The lower the utilization of production facilities, the higher the cost of production. There was also a reduction in staff at enterprises. Only 74% of vacancies are filled as businesses are losing qualified employees.
Another reason for the current inflation is the delay in opening business access to loan and investment resources. Capital investments have also fallen significantly.