The Hunger Games: Food Prices Surpass All-Time Highs | In just one month, they increased by 12.6% worldwide

The FAO Food Price Indexan entity dependent on the United Nations, Was standing in March 2022 at the highest level since the series began in 1990. The indicator averaged 159.3 points, which implies a increase of 12.6 percent compared to February. This is a “giant” leap, defined by the FAO, which has had an impact on inflation across the planet. They are registered historic high prices in vegetable oils, cereals and meat, while sugar and dairy products also show strong increases.

Together with the spike in energy prices and the acceleration in prices that occurred at the end of the pandemic, The world has been experiencing an unprecedented inflationary situation at least since the early 1980s. In Germany, year-on-year inflation in March was 7.3%, a record since reunification, while in Spain it is 9.8% a year. In the United States it is 7.9 per cent, the highest since the oil crisis during the Reagan presidency, and in Brazil 11.7.

The Argentine economy comes from a substantially higher inflation threshold, for which the acceleration of prices can bring it to the threshold of 60 percent. From the initial impact on the side of wheat and derivatives, the strong impact of corn derivatives, including poultry and pork, dairy products and widespread inputs such as glass, cardboard and aluminum, can already be felt by the Ministry of Commerce.

Cereals

“The increase in March is due to aa sudden increase in world prices of wheat and raw cerealslargely due to conflict-related shocks to exports from Ukraine and, to a lesser extent, the Russian Federation. The likely loss of exports from the Black Sea region has exacerbated the already limited global availability of grain. Concerns about the crop situation in the United States of America also contributed to the sharp rise in world grain prices in March, which spiked by 19.7%, “the report, released on Friday, said.

“After a 20.4% increase in March, international raw wheat prices hit a record high and Prices for corn, barley and sorghum have each reached their highest level since 1990. Expectations of a significant reduction in corn exports from Ukraine, a major exporter, as well as high energy and input costs, contributed to a 19.1% monthly increase in world corn prices. Strong maize markets weighed on other raw grains, with sorghum prices rising 17.3%, while supply uncertainties added pressure on barley markets, “adds FAO. rice, which has changed little from February levels and remains 10 percent below the previous year’s value.

Vegetable oils

The FAO Vegetable Oil Price Index averaged 248.6 points in March, which represents a 23.2 percent increase over February, a new all-time high. The sharp rise in the index was driven by rising oil prices sunflower, palm, soybean and rapeseed.

“International sunflower oil prices rose sharply in March, driven by the decreasing export supplies due to the ongoing conflict in the Black Sea region. Meanwhile, the prices of palm, soybean and rapeseed oils have also increased dramatically, reflecting the increased demand for global imports as a result of supply disruptions for sunflower oil. Evidently, higher and more volatile crude oil prices also pushed international prices of vegetable oils higher.“, explains FAO.

Dairy products

In the case of dairy products, FAO averaged 145.2 points in March, an increase of 2.6 percent. This is the seventh consecutive month of increase and pushes the index 23.6% higher than a year ago.

“Dairy prices have maintained their upward trend, mainly supported by the growing scarcity on world markets as milk production in Western Europe and Oceania was insufficient to meet world demand. The prices of butter and milk powder have risen sharply, supported by the surge in import demand for short and long-term deliveries, especially from Asian markets, and strong domestic demand in Western Europe. Meanwhile, while the cheese markets were also facing a strained supply situation due to strong domestic demand in Western Europe, the value of the index decreased slightly due to the effects of exchange rate fluctuations. “describes the UN dependent entity.

Meat

The meat price index it has risen by 4.8% since February and reached an all-time high. In the case of pork, there has been the most pronounced monthly increase since 1995, due to the shortage of supply of slaughter pigs in Western Europe and a sudden increase in domestic demand due to the upcoming Easter holidays.

International poultry meat prices have risen, driven by lower supplies in major exporting countries following outbreaks of avian flu, as well as Ukraine’s inability to export poultry meat in the midst of the current conflict. Beef prices also increased as the shortage of supply of ready-to-slaughter cattle persisted in some of the major producing regions while global demand remained high.

Sugar

In the case of sugar, the monthly advance in March was 6.7% and 20% per annum. “The rebound in international sugar prices in March was mainly due to the sharp rise in international crude oil prices, which has raised expectations of increased use of sugarcane to produce ethanol in Brazil in the next campaign. World sugar prices have received a further boost from the continued strengthening of the Brazilian real against the US dollar, which tends to limit producers’ sales due to lower profitability in local currency. However, the good harvesting trend and the favorable outlook for production in India, a major sugar exporter, helped to dampen the price hike and prevented further monthly increases, “FAO says.

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