Ukrainians spent 10% more on services in the first six months of 2018 as compared to the same period of 2017. Expenses for transport and communications cost Ukrainians about 600 hryniva (USD 22) per household monthly, Finance.ua reported.

Higher spending on services linked to the visa-free regime with Europe

Experts link the increase in spending on services with the visa-free regime with the European Union, which Ukrainians obtained since June 2017. The ability to travel to Europe without the need to apply for an entry visa allowed locals to visit with the view of finding a job. Thus, the mobility of the workforce increased as well as local wages. This pushed up the spending in this sector.

The highest amounts of funds is spent by Ukrainians in the sectors of communications and transportation.

27.5% of the services budget is expenses on transportation and 24% goes to communication providers. The cost of Internet and phone in Ukraine is much lower than in western countries, although locals still complain of high prices.

For instance, Ukrainians spent 16% more on transport in 2018 compared to the last year. Only 4% of this growth can be attributed to the inflation. The rest is caused by the rise in prices of petrol and higher activity of locals in using services.

This is also reflected in the growth in the hospitably sector: People stay in hotels and eat out more. Consulting fees include applications for biometric passports, which are required to enter the countries of the European Union under the visa waiver program, as well fees of lawyers.

According to the official data by Ukrstat, the least amount of money locals spent in the repairs of appliances and postal sectors: only 0.5% and 1.1% of the total spending on services.

Health and medical will continue to cost more, as well as professional services. The government is planning to maintain growth in wages with the view to achieve levels close to other countries of Europe that neighbor Ukraine, such as Poland.

In April 2018 the average monthly salary in Ukraine was USD 323. The government promised that the average wages will increase to the level of 10,000 hryvnia per month ($360).

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