The basket of purchase registered last year an increase in prices of 28.1% over the previous year and the greater increase since 2011, but still will continue to rise worldwide in 2022, according to the organization of nations
United for food and agriculture (known as FAO).
“Although high prices can normally be expected to cause an increase in production, the high cost of the inputs, the world pandemic that is still underway and the increasingly increasing climatic conditions leave little room for optimism about the return to some
More stable market conditions Even in 2022 “, has admitted Abbolreza Abbassian, Senior Economist of FAO.
This organization elaborates an annual rate on the price of food, which in 2021 has marked the maximum of the last decade when it is 125.7 points, a figure only exceeded by the one labeled in 2011, of 131.9 points.
The ups have been generalized in all types of products.
Cereals have been by 2021 27.2% more expensive than last year – the highest annual average since 2012-, highlighting the rises of corn (+ 44.1% year-on-year) and wheat (+ 31.3%)
.
The price index of vegetable oils (measuring ten different oils including palm, sunflower, soybeans and rapeseed) reached a historic maximum after rising 65.8% compared to 2020;
And meat prices rose 12.7% year-on-year (with special increase in ovine, bovine and poultry meat).
The dairy price price index was 16.9% above the 2020, as a result of the scarcity of supplies for exports in the producing regions and the increase in demand for imports in Asia;
While sugar was given 29.8%, “due to concerns about the reduction of production in Brazil and the increase in global demand,” explains FAO.
This increase in food prices has contributed to the widespread increase in inflation in all countries and has been especially detrimental to those in which food consumption supposes a higher percentage on total consumption or that need to import food, something
which usually corresponds to the less developed countries.
The International Monetary Fund (IMF) explains that “the recent increase in food inflation is attributed to the increase in oil prices (which raise the prices of fertilizers and transport costs), droughts and restrictions on the
Export imposed by some of the main exporters of food and storage in some countries. ”
“In addition, the measures of containment of the pandemic interrupted the production and import of seeds and fertilizers and caused shortage of labor during the planting seasons,” he adds.
In the countries of sub-Saharan Africa, for example, where food represent 40% of consumption, factors such as climate and currency exchange rates also influenced.
As for the prospects for this exercise, the IMF admits that “the prospects are very uncertain”.
Believes that food inflation could be moderated if the raw material prices are relieved and the interruptions of the global supply chain induced by the pandemic are resolved;
But it recognizes that “high inflation of food could persist if inflation expectations disconnect or if the supply chain interruptions continue.”
Although the pandemic, transportation and increased energy have influenced the food price rise, it began before Covid-19.
Specifically, porcine fever of China – the largest consumer of pork of the world – triggered the prices of this type of meat in 2018, which generated a domino effect worldwide.
In Spain, the food prices paid by consumers have uploaded 1.33% on average in the first eleven months of 2021 – the INE has not yet disaggregated the December data – although it is foreseeable that that average goes up when incorporating
The data of the last month of the year, in which the general IPC shot up to 6.7%.
Inflation on average has risen 2.78% by 2021 and the main analysis houses and national and international organizations expect it to be even higher in 2022.
Oils and fats are the products that have suffered the largest price increase;
followed by mineral water, refreshments, fruit juices and vegetables;
Fruits, and fish and seafood.
