The average monthly salary in Ukraine will exceed UAH10,000, or $357, this year, Prime Minister Volodymyr Groysman predicted on February 14, reports the Ukraine Business Journal.
Adjusted for inflation, real wages grew 19% in 2017 and 9% in 2016, Groysman said. He added: “Prices are rising. So our task is to make people's income grow faster than prices rise.”
Nominal wages have been rising steadily, up from UAH6,000 per month at the start of 2017 to end the year at UAH8,777. However, rising inflation has eaten into the value of real wage increases and the rise in dollar terms was more modest, rising from $247 per month to $316 over the same period.
Ukraine’s consumer price inflation (CPI) ticked up in 2017 to 13.7% compared with 12.4% in 2016, as expected after the government doubled the minimum wage earlier in the year. And inflation is expected to continue to rise this year. The central bank was forced to hike rates to 16% in January to tackle the problem.
Despite the growing income level, Ukraine is among the poorest countries in the former Soviet Union.