According to recent news from the United Nations, the global food price index in October rose by 31.3% year-on-year, climbing to the highest level in a decade. It is also expected that the global food import bill will hit a record high in 2021, surpassing $1.75 trillion, an increase of 14% over the previous year. This round of increase is mainly due to the overall increase in the price of food commodities in international trade and the triple increase in freight rates.
The report stated that although the global food trade has shown strong resilience in the face of various disturbing factors during the new crown epidemic, the rapid rise in the prices of food commodities and energy has brought huge challenges to poor countries and consumers, and most of their incomes It's all spent on the necessities of life.
FAO pointed out that in an increasing number of countries, more than 60% of household income is used for necessities such as food, fuel, water and housing. It also warned that rising food and fuel prices will have a regressive impact on poor consumers.
Several U.S. giants announce price increases
According to data recently released by the US Department of Labor, the US Consumer Price Index (CPI) rose 6.2% year-on-year in October 2021, the highest rate since 1990.
Among them, the price index of energy, food, housing, second-hand cars, new cars, etc. rose sharply. The increase in food and energy prices was the main reason for the increase in the CPI that month.
Recently, the US snack food giant Mondelez International stated that due to rising commodity prices and transportation shortages, the prices of Oreo biscuits, Lezhi biscuits and fruit jelly will rise in 2022. These products may increase their prices by 7% from next year.
At the same time, Mondelez's third-quarter net income increased from 6.67 billion US dollars in the same period last year to 7.18 billion US dollars (approximately 46 billion yuan), which was higher than the average analyst estimate of 7.03 billion US dollars. This shows that during the epidemic, consumers increased their spending on snacks.
Mondelez International CEO Dirk Vanderpoort said it has been difficult for retailers to maintain sufficient product inventories. The inventory on the shelf "is far from the level we hope. However, these problems are global, but especially in the United States." protrude.
At present, many well-known multinational food companies have announced price increases. Kraft Heinz, Nestlé, Unilever, Coca-Cola, Pepsi, etc. have all announced plans to raise prices. Among them, the US cleaning supplies giant Clorox announced that it will raise the price of its products by 70%.
The increase in food prices will eventually be passed on to consumers, especially the poor working class, whose real wages will continue to shrink as inflation in the United States increases.
Australia's fruit, vegetable and beef prices record high
According to the latest data released by the Australian Bureau of Statistics (ABS), the Consumer Price Index (CPI) rose 0.8% this quarter. In the past 12 months, the CPI has risen by 3.0%. The biggest increase was in new homes purchased by owner-occupiers (+3.3%) and automobile fuel (+7.1%).
The Health Transition Institute found that some products in Australia are 15% more expensive than before. When the lockdown was implemented, dried pasta products became the darling of panic buying, and their prices have now risen by 15%. Fresh fruit prices rose by an average of 7%, edible oil prices rose by 4%, and long-life milk prices rose by 3%.
Australia Seven News conducted a survey of more than 10,000 people on Facebook. The survey showed that about 93% of the respondents said that they spend more on groceries than before.
In terms of fruits and vegetables, Tyson Cattle, executive officer of the Australian Farmers' Horticultural Council, said that although growers will have to bear some costs, consumers will pay more. The price of high-quality fruit has pushed up to over 20 Australian dollars per kilogram.
In addition to fruits and vegetables, beef prices have entered the luxury goods sector. According to the latest trade data, beef prices in the international market have continued to rise recently, and the wholesale price of domestic beef in Australia has also hit a record high, mainly due to the continuous increase in live cattle transaction prices caused by the shortage of live cattle supply across Australia.
Prices in Brazil are soaring, 19 million people can’t get enough to eat
According to data released by the Brazilian National Geographic and Statistics Bureau, in the past 12 months, Brazil's national consumer price index has increased by 10.67%, approaching the high point of 10.71% inflation during the 2016 economic crisis. With soaring prices, the Brazilian people feel the pressure of life.
In the past year, the price of Brazilian vegetables has increased by more than 85%, and the prices of sweet potatoes, sugar, beef and coffee have increased by 30% to 50%. In the past month or so, fuel prices have been raised three times.
In recent days, protests have erupted in many places in Brazil. In Sao Paulo, Brazil's largest city, thousands of people took to the streets to protest the current soaring prices and the difficulties in life.
Statistics show that among the country's total population of 213 million, at least 9%, or 19 million people, cannot guarantee a full meal a day. Two years ago, this number was about 10 million. Many people basically rely on donations from charitable organizations to make a living.
In order to alleviate the life pressure of low-income people, the Brazilian government has announced that it will launch a new "family subsidy" project. It is estimated that each poor family will receive 400 reais per month, which is approximately RMB 480. Will continue until 2022. But economists worry that this move may lead to an increase in government expenditures and increase the government's debt burden.
