Pasta, coffee, mustard, flour… For several months French consumers have been observing an increase in food prices, which currently even seems to be accelerating.
The price increase that has been observed in food over the past few months is mainly related to problems resulting from the global coronavirus crisis. Due to the pandemic, both raw material prices and transportation and packaging costs have risen, reports the retail trade.
However, the price increase in nuts is linked to bad weather. Last year’s frosts damaged fruit crops in France and reduced harvest yields. The increase in prices for pasta and semolina is due to Canada, the largest producer of durum wheat, having had a bad harvest last year.
The foods particularly affected by inflation are pasta, with an increase of 14% since March of last year. This is not only due to the rise in wheat prices but also to packaging. The price of cellulose, which is used to make cardboard, has also risen significantly. Second is mustard, with an increase of 8%, due to the price of sunflower oil used in its production rising by 7.4%.
Is a shortage feared?
No: currently, in fact, it is only consumer behavior that causes shortages on supermarket shelves. Empty shelves are a consequence of consumer fear. In the current situation, consumers tend to buy more, sometimes causing brief shortages in stores until the merchandise can be restocked.
Experts believe that food inflation will continue. The war in Ukraine is causing a sharp increase in energy prices, which is reflected in the final price of products in retail. Manufacturers need energy for production, transportation, etc. Another reason for an upcoming price increase is the following: current prices of some products were calculated based on last year’s export prices of Ukrainian and Russian cereals. The current geopolitical context will only be reflected in consumer prices later on. Although Ukraine is doing its best to continue planting wheat and corn, the war could complicate harvesting and transportation.
Dado que tres cuartas partes de la producción mundial de girasol es ruso-ucraniana, podría haber tensiones muy significativas. Rusia y Ucrania son también de los principales productores mundiales de trigo para alimentación animal. Por ello, es muy probable que el grano que se utiliza para alimentar terneros, vacas y cerdos se encarezca, lo que a su vez ocasionará que los productores tengan que vender sus productos cárnicos a mayor precio. Ucrania es también un importante productor de fertilizantes y exportador de pollos.