Food and Energy Inflation Takes Its Toll On Consumers Around The World – By Panos Mourdoukoutas Ph.D. (IB Times) / April 9, 2022
In Sri Lanka, consumers form long lines to buy fuel and food. In Greece and South Korea, consumers spend more than 5% of their monthly paycheck on gas purchases, according to Statista.com. In the U.S., households paid 11.5% more for groceries in February 2022 compared to one year early and 18.9% more compared to two years ago, according to the Inflation Insights Price Pulse. That’s well above the overall inflation rate of 7.9% reported by the federal government for February.
“We were in sticker shock over the price increases in our last supermarket expedition,” says Scott Moses, Head of the Grocery, Pharmacy & Restaurants Group at Solomon Partners. And he thinks the situation will get worse in the months ahead, as supermarket prices do not fully reflect the impact of the Russian-Ukraine war. “Most high grocery prices today reflect grocers’ purchases from a few months ago and do not yet reflect the crisis in Ukraine and Russia, who comprise roughly 30% of the world’s wheat exports,” he adds.
“Feed and fertilizer costs have increased considerably, increasing protein costs, among other downstream categories.
Food price inflation will likely increase until tension recedes, supply is restored, and markets recalibrate back toward a historical equilibrium.”
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