How the Borscht Index and the new McDonald's menu are connected

In May, food inflation in Ukraine reached its peak. The Borsch Index (BI), an aggregate indicator of food prices calculated by the Ukrainian Agribusiness Club (UCAB), also set a historical record .

The CPI rose to UAH 222, which is one and a half times higher than a year ago and 19% higher than in April. Even McDonald's had to respond to the rise in food prices in May. Two weeks ago, smaller and cheaper versions of the company's most expensive burger, the Big Easy, were introduced .

Price growth drivers

The most expensive component of the IB is meat, namely pork. In May, the share of meat in the index remained almost unchanged at 50%. Although prices for it increased by 18% over the month .

This was influenced by an increase in demand due to the "May kebabs" and the fact that April included three weeks of fasting before Easter.