food supermarket
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Global food prices have continued to grow substantially this year, with the price index shooting up 27%, according to the INFOLine information and analytical agency.

"This is one of the most dynamic price increases since the 70s. Then the price level was about the same, but then it was associated with global financial changes. For 40 years there has not been such a rise in prices that we are now observing," INFOLine CEO Ivan Fedyakov told URA.RU.

The analyst pointed to the fact that prices for various goods are related. "Prices are growing not only for fruits and vegetables or milk, but also for feed and fertilizers. This triggers a price spiral, and prices rise and will continue to rise, but the other question is that purchasing power is not unlimited."

European statistics agency Eurostat reported earlier that annual inflation in the eurozone jumped to a 13-year high in September, driven mainly by a surge in energy prices and the record-shattering cost of natural gas. It was the highest seen level since the economic crisis in September 2008, Eurostat said. According to its data, food, alcohol and tobacco prices across the euro area rose by an average of 2.1%.

High food prices are here to stay - Kraft Heinz

Consumers will have to get used to increasing food prices, as pandemic-shaken economies and the global energy crunch have placed an enormous burden on the world's food producers, Kraft Heinz CEO Miguel Patricio has warned.

Patricio admitted that the world's fifth-largest food and beverage company has been raising prices of such products as ketchup and baked beans "where necessary around the world." Kraft Heinz has reportedly increased prices for more than half of its products in the US, the company's home market, and expects to do the same elsewhere.

The warning comes shortly after the UN Food and Agriculture Organization reported that the cost of ingredients, including cereals and oils, has pushed global food prices to a 10-year high.

Patricio highlighted that inflation was "across the board," unlike in previous years. Production of raw materials across the world, ranging from crops to vegetable oils, saw a dramatic decline as the Covid-19 pandemic limited both output and delivery due to the rise of infections and measures to control the virus' spread.

When the vaccine rollout allowed economies to reopen, the restarted supply failed to keep up with the sharply increasing demand, inevitably leading to price spikes. Moreover, soaring energy prices have made the situation even more complicated.
Empty shelves

The other factor to consider: Empty shelves in the meat aisle of a branch of Tesco in Liverpool
"Specifically in the UK, with the lack of truck drivers. In the US logistic costs also increased substantially, and there's a shortage of labor in certain areas of the economy," Patricio said, as quoted by the BBC.


Comment: It's rather insidious that big business has tried to blame these backlogs, shortages, and soaring costs, on 'a lack of staff', when it's pretty clear that 19+ months of government enforced lockdowns caused the most damage.


He stressed that not all cost increases should be passed on to consumers, with manufacturers expected to absorb some of the costs.

"I think it's up to us, and to the industry, and to the other companies to try to minimize these price increases," he said, adding that "there's a lot to come in technology to improve the effectiveness of farmers" that would help in the longer term.