prices skyrocketed since the end of the covid-19 lockdowns and the start of the war in Ukraine and, according to the International Monetary Fund (IMF), world inflation will reach 8.3% this year. How does this affect households?
Next, we explain some of the items that have been impacted during 2022.
Since the start of the war, oil prices have skyrocketed, with Russia being the world’s third largest producer. The barrel of Brent from the North Sea touched 140 dollars before going back under the 100 threshold.
(See: What was the ‘Nixon shock’, the failed attempt to curb inflation).
that caused a rise in gasoline prices, exceeding two euros per liter in March in France, Germany or the United Kingdom, or five dollars per gallon (3.78 liters) in the United States in mid-June, before moderating in recent weeks.
In the case of Colombia, the fuel will have an increase, for now, of 200 pesos per month in October, November and December 2022
Ditto for gas: energy is by far the leading component of inflation in the euro zone, rising 38.3% year-on-year, according to a first Eurostat estimate for August.
(See: Wave of rate hikes around the world to counteract inflation).
This has repercussions throughout the economy by increasing the production costs of companies. The situation is so critical that some factories have closed to avoid excessively high bills.
Gasoline price increase
istock
being Ukraine the ‘breadbasket of Europe’, the war has pushed up the prices of cereals and led to record-breaking wheat in early March.
For this reason, pasta became more expensive and, by May, Allianz estimated that this product had increased by 19% in the eurozone in the last 18 months.
In Canada, a major exporter of wheat, the 500-gram package of pasta rose 60 cents in price in a year to 3.16 Canadian dollars (2.39 US dollars), according to official figures.
(See: The dollar and its rise, the one pointed out by Petro to generate inflation).
In Thailand, instant noodles, a very popular product whose price is limited by the State, rose in price in August for the first time in 14 years, going from 1 bat ($0.03) to 7 bats.
Regarding corn, the kilo of tortilla, a staple food in Mexico, increased by 2.79 pesos (0.15 dollars) on average between January and mid-September, according to official data.
In Colombia, based on data from Corabastos, it is ensured that, for January, prices were presented for the consumer of $125,000 per package of 50 kg of pastusa potato, but this trend was changing in February, when the tuber rose to $145,000, while for March there was a reduction reaching $140,000. The trend continued for April, when it was sold at the same price as the previous month, but in May prices began to decline, reaching $80,000 bulk.
For June, July and August, the downward trend continued with $70,000, $55,000 and $55,000 respectively. And, currently, the price is set at $45,000.
However, from Fedepapa they say that, in the coming months, the price of potatoes could go up given that “the harvest of Cundinamarca and Boyacá is ending”.
Potato farming
Filiberto Pinzon
With the most expensive grain, feeding cattle is more expensive, with which the prices of meat increase.
Pork, the most consumed meat in China, reached an increase of 22% in one year in August. The authorities are considering resorting to their strategic reserves of this food, for the second time this year, to stabilize the price.
(See: The Fed raises interest rates by 75 basis points).
In Argentina, minced beef, popular for its traditionally low prices, rose 76.7% year-on-year. The country suffers from one of the worst inflation rates in the world, 56.4% in the first eight months of the year.
In Europe, the price of poultry, also fueled by bird flu. The 100 kilos of chicken became more expensive by 33% year-on-year in August, according to data from the European Commission.
imported meat.
istock
Inflation is also noticeable at the time of drinks: beer pays for the higher prices of barley and wheat, but also from the aluminum of the cans and the glass of the bottles.
These drinks are a “70% more expensive than before the war” in Ukraine, according to the Brewers of Europe association.
(See: Banrep would have to be more forceful to curb inflation).
the brewery Heineken noted that it had increased its prices by 8.9% on average in the first half of 2022.
According to estimates of Bloomberg, the Brazilian-Belgian company AB InBev (Corona, Budweiser, Quilmes) raised theirs by 8%.
In the United Kingdom, the pint of beer exceeded four pounds sterling, the highest level since 1987, according to the National Statistical Office.
Beer
Time
Paper is also more expensive. Its manufacture requires a lot of energy and the price of paper pulp had already increased with the resumption of activity after the lockdowns.
French newspapers like Le Figaro, L’Humanite either Le Point have become more expensive by a few tens of euro cents since January.
In the UK, newspapers like The Sun, The Times either The Sunday Mail They also announced price increases.
Other newspapers chose to reduce their pagination.
Globally, newspaper prices rose 6.5% in July, according to Eurostat.
AFP
