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RISING FOOD PRICES POSE INFLATION THREAT
2 years ago
6
Food Prices Are New Inflation Threat for Governments and Central Banks.
Widening profit margins may explain why consumers are paying more for food even though commodity prices are down
In 12 months through March, prices of food, alcohol and tobacco were up 15.4% in the eurozone, while energy prices were down 0.9%. Food prices were up 10.2% in the U.S. in the 12 months through February, well ahead of energy at 5.2%.
Most economists expect to see a cooling of food prices over coming months. But it is unclear why they rose so much to start with. In world commodity markets, which set the prices received by farmers, food prices have been falling since April 2022. In most countries, food makes up the largest share of households’ budgets.
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