Business

Why is food inflation rising?: ING . Top quotes from economists

May 14, 2022
Bharat Times

Renowned economists at ING said, “There are many reasons for rising food prices…”.

“Food inflation continues to rise. There are many reasons for the rise in food prices…” Renowned economist at ING.

Here are the top 10 comments from ING’s economists:

  1. “Food manufacturers are raising prices due to higher costs, but food inflation levels vary greatly between countries. Some EU consumers are already looking for cheaper alternatives in supermarkets. As long as food companies continue to raise their prices the more likely consumers are to eventually trade.”

  2. “Global food demand remains strong, but the supply side is going through a period of turmoil as farmers around the world see their input costs increase. How much of these input costs have increased depends on the area and farms cultivated by farmers. Depends on the type of crop being grown. Or what kind of animals they keep.”

  3. “Rising energy and fuel bills are a major contributor to higher costs in agriculture.”

  4. “Ahead of the supply chain, food manufacturers are facing higher prices in a variety of critical inputs from agricultural commodities and food ingredients to packaging, energy and transportation.”

  5. “While direct energy use typically accounts for only a small portion of the total cost for food manufacturers and retailers, higher energy prices are still mitigated through the food products and transportation services they purchase. “

  6. “The costs for food manufacturing and retailers account for the majority of the cost … and current prices for agricultural commodities and energy do not provide much relief.”

  7. “Food commodity prices are at a very high level.”

  8. “Non-Western countries are most affected by food inflation: this is not good news for consumers, especially non-Western countries. Of the G20 countries, Turkey and Argentina have the highest levels of food inflation, with food prices increasing. increased by 60.-70% in March, slightly higher than the general inflation in these countries.”

  9. “Consumer demand for fruits, vegetables, meat and dairy is more responsive to price increases than staples such as cooking oil or grain products.”

  10. “Food inflation has not yet reached a critical juncture. Demand remains largely unresponsive to price increases,” ING economists said.