Meat has risen in price, a fruit basket cost almost a euro more than in 2019, but during the pandemic, vegetables fell in price by a few cents.
According to reports made TVI24 Based on the latest values of the consumer price index and the example of a grocery basket calculated for one person per week, we can conclude that in August 2021 we paid with a box another 1.40 euros than we paid in the same month in 2019. …
Most of all meat has risen in price. If in 2019 9.99 euros allowed us to buy half a kilo of pork steaks, an average package of chicken steaks and 270 grams of beef, today this price rises to 10.54 euros.
For example, a pound of bifan currently costs 2.3 euros – on average, based on the selling price to the public in four different supermarkets. Since the price of this product has increased by 5.32% since 2019, we understand that before the pandemic this product was worth around 2.17 euros.
According to Enrique Tome, financial analyst at XTB, the reason is “rising commodity prices, which continue to fuel inflationary pressures.” However, he suggests that “prices are expected to stabilize in the coming years as the economy continues to reopen and constraints continue to be overcome.”
The focus is on pork, which has increased by 97% in 2020 (most food products are up 17.4% this year), mainly due to an outbreak of swine fever that has spread across the country. Mainland China in January. Millions of animals have died and the situation has caused a change in demand from importers who have tried to find a solution in Europe and the United States.
For several months, the economy was in a state of standstill, which led to the limitation of production of various products. In addition, the rise in the price of raw materials such as agricultural products must also be the cause of this rise in food prices, ”the financial analyst determines.
In the United States, the reality is notorious if we consider bacon, which has reached its highest value in 40 years. According to the US Consumer Price Index, the average price for a slice of bacon has increased by 28% over the past 12 months, and for pork chops by 7%.
Another product group that also saw significant growth is fruits, the price of which increased by more than 15% in August 2020. Applying the same requirements, in 2019, if I took a kilogram of apples, a kilogram of bananas, 500 grams of white grapes and a kilogram of oranges in the basket, I would pay 6.17 euros. In 2020, this price rose to 7.28 euros, and a year later fell to 7.12 euros.
Less pronounced growth is observed in receipts for bread and cereals. The average of the four hypermarkets shows that the price of three rye balls, two mix balls and three wheat baguettes is 2.17 euros. An increase of four cents from 2019 and one cent as of August 2020.
However, there are also foods that have fallen in price (not very much) during the pandemic. Taking the basket of choice, for example, vegetables, eggs and dairy products fell by a few cents.
Example: Two cartons of milk, a dozen eggs and a carton of Flemish cheese will cost an average of € 5.05 in 2019. In 2020, with a deviation of minus 0.57%, the price was 5.02 euros, which is one cent more than in 2021. …
In the vegetable section, lettuce, a kilo of tomatoes and potatoes, a bag of spinach and a kilo of zucchini are now 6.19 euros. In 2020, the cost was 6.21 euros, and before the pandemic it was 6.29 euros.
A lot of information has emerged over the past few months that food prices are rising, and many experts see the pandemic as an excuse. In fact, production constraints and more limited supply of goods are notorious, but it is important to understand how this context has impacted portfolios.
Overall, one can see how there were 17 months from February 2020 to August 2021 during which food prices rose year on year, with the peak being reached in June, the month when the Consumer Price Index was used to observe for the dynamics of inflation for a certain (or not) set of goods – reached 3.32%.
According to Enrique Tome, the main variables that influenced the price of food paid by the consumer are related to the fact that the economy has been producing “half of the gas” for almost a year and a half. This “exacerbated the situation with products that still fear the future, as the pandemic is still far from control.”
Supply chain restrictions for some products also did not help and contributed to the rise in prices. In addition to all this, the rise in prices for agricultural products means that producers have to pass the costs on to end consumers, ”he explains in an interview with TVI24.
Even so, while Portugal is not one of the countries with the highest inflation rates in the eurozone or compared to other countries such as North America, “this overall price increase is expected to start to slow down in the coming months.”
What about traditional Christmas food? Can we expect an increase? Thomas says that “the opportunity exists,” although inflation is expected to start to decline in the last quarter of this year.
World Food Prices Peak in 10 Years
The UN food agency said Thursday that global food prices rose for the second straight month, in September, and reached a 10-year peak.
The Food and Agriculture Organization (FAO), based in Rome, also predicted a world record for cereal production by 2021, but said it would be more than projected consumption.
The FAO Food Price Index, which tracks world prices of the world’s best-selling foodstuffs, averaged 130.0 points last month, the highest since September 2011, according to the agency, according to the agency.
In annual comparison, prices in September rose by 32.8%.
In a similar vein, agricultural prices rose sharply last year, driven by a decline in production and demand in China.
The FAO Cereal Price Index rose 2.0% in September from the previous month, while wheat prices rose nearly 4%.
Global vegetable oil prices also rose 1.7%, up about 60% annually, driven by global concerns over labor shortages in Malaysia.
In addition, global sugar prices rose 0.5% in September on fears of unfavorable weather conditions for sugarcane from the main exporter, Brazil. However, this is partially offset by favorable manufacturing prospects in India and Thailand, according to FAO.
