Home » Posts tagged 'food price inflation'

Tag Archives: food price inflation

Restaurants are moving towards dynamic menu prices. Expect big surcharges for peak times. Don’t expect off peak prices to drop much. Labor costs are rising too.

CPI food indexes prices, data from the BLS, chart by Mish

Surge Pricing Is Coming to You

Restaurants are experimenting with surge pricing to deal with peak hours and staffing demand. They like it. You probably won’t.

The Wall Street Journal reports Surge Pricing Is Coming to More Menus Near You

Restaurants like San Diego-based Cali BBQ are experimenting with a form of the dynamic pricing long used by airlines, hotels and ride-hailing services. Technology providers are pitching services that enable restaurants to change prices weekly or monthly, increasing or slashing the cost of a taco or sandwich between a few quarters to several dollars, depending on demand and sales patterns.

Dynamic pricing—charging higher rates at peak times and dropping them at slower ones—has become commonplace in industries such as e-commerce, and mobile apps have made it easier for companies to study consumers’ buying and browsing and quickly adapt. Rising costs in recent years have led more retailers to implement it.

Restaurants are experimenting with the technology as the industry looks for ways to boost sales and increase profits. Many restaurants increased menu prices as labor, food and other costs have soared since 2021.

Wendy’s drew public scrutiny after the burger chain said in a mid-February earnings call that it was looking to test dynamic pricing. The chain said it would invest around $20 million in its U.S. restaurants to install digital menu boards by 2025 that could suggest items to customers and present different offerings depending on the time of day.

…click on the above link to read the rest…

Soaring Food Prices Prompt Eurasian Nations To Ban Food Exports

January 28, 2023

Soaring Food Prices Prompt Eurasian Nations To Ban Food Exports

The harshest winter since 2008 is contributing to shortages of staple vegetables across Central Asia and sending prices north in a region still suffering from COVID-induced food inflation.

In Uzbekistan, record frosts have highlighted the shortcomings of the national energy system as even residents of the capital spent days on end without power. But the cold has also hammered the agriculture sector in the region’s most populous country.

On January 20, the Uzbek agriculture minister announced a four-month ban on exports of onions after prices doubled in three weeks.

The title of the ministry’s press release – “there are reserves of onions in Uzbekistan” – hints at panic.

Once among the cheapest onions produced by former Soviet countries, Uzbek onions are now as expensive as onions from countries like Georgia and Moldova, the ministry said, reaching 6,000-8,000 sum (53-71 cents) per kilo.

While the frosts have ruined part of the onion stock in storage, that is not the only source of pressure on prices. Vast energy deficits have strained logistics, with gas stations shut down and roads covered in ice, the ministry said.

In comments to private news website Gazeta.uz, one resident of Bukhara region gave an account of this perfect storm: “Due to the closure of gas stations, there are problems with public transport. On Tuesday we went to the market and did not see a single bus. The only thing left is taxis. Food prices have gone up. They say that goods are not being brought from Tashkent. There are no sellers at the Kholkhozni bazaar because vegetables and fruits have frozen.”

Potatoes have also jumped in price since the start of the year – by 14 percent, reported specialist agriculture news site East Fruit last week.

…click on the above link to read the rest…

More Than Half of Canadians Worried About Putting Food on the Table: Poll

December 14, 2022

A woman shops for produce in a grocery store in Toronto, Canada, in a file photo. (Nathan Denette/The Canadian Press)

More Than Half of Canadians Worried About Putting Food on the Table: Poll

A new poll suggests that more than half of Canadians surveyed are worried about having enough money to put food on the table, while 86 percent of people are worried the country will face an economic recession in 2023.

Food inflation is reported at higher than 10 percent, and the most recent Canada Food Price Report released Dec. 5 says the cost of groceries will increase another 5 to 7 percent on average next year. These are the highest increases in food prices in the last 12 years that the report has been produced.

“This year’s report predicts that a family of four, including a man (age 31–50), woman (age 31–50), boy (age 14–18), and girl (age 9–13) will pay up to $14,767.36 for food, an increase of up to $966.08 from the total annual cost in 2021,” said the report.

Food price increases in Alberta, British Columbia, Newfoundland and Labrador, Ontario, and Saskatchewan will likely be higher than the national average in 2022, while price increases in the remaining provinces will be lower.

Gas Costs

Besides food prices, Canadians are also worried about putting gas in their cars and trucks. Sixty-one percent of 1,005 adult Canadians surveyed Nov. 11–15 in the Ipsos poll commissioned by Global News said they were worried they may not be able to afford fuel for their vehicles.

Seventy-one percent were worried that interest rates will rise too fast, while 42 percent said they were worried about losing their jobs if the economy did not rebound.

Fifty-two percent of Canadians surveyed said they were worried they would be short of money to buy Christmas gifts, and 48 percent said they were worried about overspending during the holidays. Eighty-one percent of those surveyed were worried inflation was making everyday items less affordable.

…click on the above link to read the rest…

UK Food Inflation Hits Record High As Discretionary Income Evaporates Ahead Of Dark Winter

November 10, 2022

UK Food Inflation Hits Record High As Discretionary Income Evaporates Ahead Of Dark Winter

Brits have watched double-digit inflation wipe out any wage gains in one of the worst cost-of-living crises in a generation. Many have gone into debt, paying for things such as food, energy, and shelter. Others have been left with little or no discretionary income ahead of a very dark and cold winter.

Research company Kantar published a new survey Tuesday that revealed startling food inflation numbers for October that soared at the fastest pace in 14 years.

Kantar said annual grocery prices rose to 14.7% last month, the fastest since the research firm began tracking prices.

Consumers are expected to pay an additional £682 in their annual grocery bill if they continue buying the same items.

The survey found that 27% of all households are “struggling financially,” double the amount from last November. Nine in ten respondents said food inflation is a top concern, while energy bills were second.

“So it’s clear just how much grocery inflation is hitting people’s wallets and adding to their domestic worries,” Kantar said.

Kantar revealed consumers are switching from name-brand items to cheap private-label store brands to save money:

Own label sales have jumped again by 10.3% over the latest four weeks, as shoppers adopt different strategies to manage their budgets. The branded goods market grew far slower at 0.4%.

In a separate study, the Joseph Rowntree Foundation found a whopping 7 million families have given up on heating, showers, and toiletries this year due to the cost-of-living crisis squeezing discretionary income.

The Centre for Economics and Business Research, which publishes the Asda tracker, found that after paying taxes for housing, heating, and food, 20% of earners in the second lowest income have nothing left to spend, according to Bloomberg.

…click on the above link to read the rest…

Orange Juice Prices Soar To Record Highs As Inventories Collapse

October 25, 2022

Orange Juice Prices Soar To Record Highs As Inventories Collapse

We recently outlined “Orange Juice Prices Could “Increase Substantially” As Hurricane Pummels Florida’s Top Citrus Grow Region.” And that’s precisely what’s happening today.

First, let’s begin with US stockpiles of cold-stored orange juice plunged by 43% in September from a year earlier — the lowest level since 1977, according to the latest US Department of Agriculture data.

A combination of crop diseases across Florida’s citrus groves and Hurricane Ian that destroyed crops are creating a supply crunch that has catapulted orange juice futures contracts to as high as $2.18 per pound, the highest level ever.

Ahead of Hurricane Ian, we penned a note titled “OJ Squeeze Ahead? Tropical Threat Looms For Florida’s Citrus Groves” and warned this may spark even higher breakfast inflation. Last month, we noted that a dozen eggs at the supermarket have jumped to record highs due to devastating bird flu.

Sticky food inflation continues to wreak havoc on households, as shown in the latest CPI report.

Breakfast was cheap but has since become expensive as orange juice and egg prices soar to record highs.

Putin Says US Decision To Print Money Is Behind Soaring Food Prices

June 3, 2022

Putin Says US Decision To Print Money Is Behind Soaring Food Prices

Earlier, we reported on the deranged, confused, false ramblings of a senile old man who is so out of his depth in running the world’s biggest economy, the catastrophic results will soon be obvious to even his most die-hard fans. Now, it’s time for his nemesis on the world scene, Russia’s Vladimir Putin to respond.

Speaking in a TV interview on Friday evening, following a meeting with African leaders in Sochi, Putin accused Western leaders of trying “to shift the responsibility for what is happening in the world food market” and said that “restrictions imposed by the US and its allies against Russia and Belarus will only exacerbate the looming global food crisis by affecting fertilizer trade and sending the food prices further up.”

Instead of looking toward Russian, Putin said that the root causes of the crisis lie with the US decision to print record amounts of money which led to an increase in global food prices, as well as Europe’s over-reliance on renewables and short-term gas contracts, which have led to price hikes and rising inflation.

“It began to take shape as early as February 2020 in the process of combating the consequences of the coronavirus pandemic,” he added.

High gas prices, the direct result of Europe’s catastrophic green/ESG policies which as we warned one year ago would spawn energy hyperinflation, resulting in under-investment in the traditional energy sector, have forced many fertilizer producers to shut down their businesses because of unprofitability; such developments have shrunk the fertilizer supply, which, in turn, has sent the food prices up, he added. This is another topic we have discussed extensively in the past (see our Oct 2021 article “Fertilizer Prices Hit Record Highs, May Pressure Food Inflation Even Higher“), and yes, Putin is correct again.

…click on the above link to read the rest of the article…

Let Them Eat Bugs… How Out of Touch Elites Reveal Their Contempt and What Comes Next

May 21, 2022

Let Them Eat Bugs… How Out of Touch Elites Reveal Their Contempt and What Comes Next

Upon being told that the people had no bread, Marie Antoinette reportedly responded, “let them eat cake.”

These infamous words were a stark illustration of the French elite’s careless indifference to the plight of ordinary people. Moreover, they likely fueled the anger that sparked a revolution that overturned the French ruling system.

Had Marie Antoinette not been so out of touch, she might have had a better choice of words.

Although history doesn’t repeat itself, it does rhyme.

I am bringing this up because recently, modern political, financial, and media elites have made numerous “let them eat cake” remarks.

They similarly reveal how oblivious they are to the average person’s problems as inflation spirals out of control, shortages spread, the stock market crashes, and economic prospects look dimmer by the day.

Let’s look at them and examine what they could mean for the social and political environment in the future… and what you can do about it.

Example #1: Inflation Is Good

First central bankers, the mainstream media, and academia tell you there is no inflation.

Then, when inflation becomes undeniable, they tell you not to worry because inflation is only “transitory.”

Then, when it becomes apparent that it’s not merely transitory, they tell you not to worry because inflation is actually a good thing.

It’s not uncommon to see ridiculous headlines like this:

Example #2: No More Turkey at Thanksgiving

After inflation broke through multi-decade highs, it’s no longer possible to maintain the farce that “inflation is good.”

So the elite’s messaging has pivoted to ways the plebs can cope with ever-decreasing living standards.

Last Thanksgiving, it was impossible for the Federal Reserve to ignore the soaring costs of turkey. So, instead, the St. Louis branch had a helpful suggestion for those struggling—substitute delicious turkey for cheaper heavily-processed industrial sludge.

…click on the above link to read the rest of the article…

India isn’t the only one banning food exports. These countries are doing the same

May 21, 2022

India isn’t the only one banning food exports. These countries are doing the same

The war has triggered a huge spike in wheat prices, with Russia and Ukraine among the biggest exporters of the commodity. Many countries have banned wheat, as well as other food exports as a result of the Ukraine crisis.
“As the war continues, there is a growing likelihood that food shortages, particularly of grains and vegetable oils, will become acute, leading more countries to turn to restrictions on trade,” said the International Food Policy Research Institute.
Here’s a list of countries that have banned food exports in the months after the Russia-Ukraine war started, according to a live tracker developed by the International Food Policy Research Institute.

Workers unload wheat sacks from a truck at a Punjab Grains Procurement Corp. facility in the Ludhiana district of Punjab, India, on Sunday, May 1, 2022.

India has banned wheat exports as the price of grain surged this year due in part to the Russia-Ukraine war.

T. Narayan | Bloomberg | Getty Images

India has banned wheat exports, becoming the latest country to do so as the price of grain surged this year due in part to the Russia-Ukraine war.

The war has triggered a huge spike in wheat prices, with Russia and Ukraine among the biggest exporters of the commodity. Both countries account for 29% of global wheat exports, according to the World Bank.

“With food prices already high due to COVID-related supply chain disruptions and drought-reduced yields last year, Russia’s invasion came at a bad time for global food markets,” said the International Food Policy Research Institute (IFPRI) in an April note.

Washington D.C.-based think-tank the Peterson Institute for International Economics added in a recent note that Russia’s war on Ukraine has “taken a shocking toll on the region.” “It has also contributed to a global food crisis, as Russia is blocking vital fertilizer exports needed by farmers elsewhere, and Ukraine’s role as the breadbasket for Africa and the Middle East has been destroyed.”

…click on the above link to read the rest of the article…

Ukraine war: World Bank warns of ‘human catastrophe’ food crisis

April 22, 2022

Ukraine war: World Bank warns of ‘human catastrophe’ food crisis

The world faces a “human catastrophe” from a food crisis arising from Russia’s invasion of Ukraine, World Bank president David Malpass has said.

He told the BBC that record rises in food prices would push hundreds of millions people into poverty and lower nutrition, if the crisis continues.

The World Bank calculates there could be a “huge” 37% jump in food prices.

This would hit the poor hardest, who will “eat less and have less money for anything else such as schooling”.

In an interview with BBC economics editor Faisal Islam, Mr Malpass, who leads the institution charged with global alleviation of poverty, said the impact on the poor made it “an unfair kind of crisis… that was true also of Covid”.

“It’s a human catastrophe, meaning nutrition goes down. But then it also becomes a political challenge for governments who can’t do anything about it, they didn’t cause it and they see the prices going up,” he said on the sidelines of the IMF-World Bank meetings in Washington.

The price rises are broad and deep, he said: “It’s affecting food of all different kinds oils, grains, and then it gets into other crops, corn crops, because they go up when wheat goes up”.

There was enough food in the world to feed everybody, he said, and global stockpiles are large by historical standards, but there will have to be a sharing or sales process to get the food to where it is needed.

Mr Malpass also discouraged countries from subsidising production or capping prices.

Instead, he said, the focus needed to be on increasing supplies across the world of fertilisers and food, alongside targeted assistance for the very poorest people.

…click on the above link to read the rest of the article…

German Retailers To Increase Food Prices By 20-50% On Monday

April 3, 2022

German Retailers To Increase Food Prices By 20-50% On Monday

Just days after Germany reported the highest inflation in generation (with February headline CPI soaring at a 7.6% annual pace and blowing away all expectations), giving locals a distinctly unpleasant deja vu feeling even before the Russian invasion of Ukraine broke what few supply chains remained and sent prices even higher into the stratosphere…

… on Monday, Germany will take one step toward a return of the dreaded Weimar hyperinflation, when according to the German Retail Association (HDE), consumers should prepare for another wave of price hikes for everyday goods and groceries with Reuters reporting that prices at German retail chains will explode between 20 and 50%:

GERMAN RETAIL CHAINS TO INCREASE FOOD PRICES BY 20-50% FROM MONDAY

Even before the outbreak of war in Ukraine, prices had risen by about five per cent “across the product range” as a result of increased energy prices, HDE President Josef Sanktjohanser told the Neue Osnabrücker Zeitung on Friday. With Russia’s invasion hitting economies and the supply chain harder, yet another series of price increases is on the horizon.

“The second wave of price increases is coming, and it will certainly be in double figures,” Sanktjohanser warned, cited by The Local.

According to the president of the trade association, the first retail chains have already started to raise their prices in Germany – and the rest are likely to follow.

“We will soon be able to see the impact of the war reflected in price labels across all the supermarkets,” said Sanktjohanser.

Recently, popular retail chains such as Aldi, Edeka and Globus announced that they would be forced to raise their prices. At Aldi, meat and butter will be “significantly more expensive” from Monday due to price hikes from its suppliers.

…click on the above link to read the rest of the article…

How Russia’s invasion of Ukraine is tearing apart the global food system

March 14, 2022

How Russia’s invasion of Ukraine is tearing apart the global food system

The UN Food and Agriculture Organisation is warning that countries such as Yemen risk a spike in food prices and food insecurity because of the Russian invasion of Ukraine. PHOTO: EPA-EFE

LONDON (BLOOMBERG) – The global food system is under threat as Russia’s invasion of Ukraine puts one of the world’s major bread baskets in jeopardy.

Here are the latest developments and their far-reaching impacts:

Food inflation

The Ukraine war threatens staple crops from Europe’s key grain-growing regions, which means escalating food prices that have already been plaguing consumers around the world could get worse, raising the threat of a full-blown hunger crisis. The United Nations warned that already-record global food costs could surge another 22 per cent as war stifles trade and slashes future harvests.

Grains are the staples that feed the world, with wheat, corn and rice accounting for more than 40 per cent of all calories consumed.

Higher shipping costs, energy inflation, extreme weather and labour shortages have made it harder to produce food. And supply is shrinking: grain stockpiles are poised for a fifth straight annual decline, according to the International Grains Council. The war in Ukraine stands to only push prices up further, sending hunger to unprecedented levels.

Global food prices are at all-time highs, with a benchmark UN index soaring more than 40 per cent over the past two years. Food insecurity has doubled in that period, and 45 million people are estimated to be on the brink of famine. Agricultural markets are also soaring. Wheat hit an all-time record in Chicago last Tuesday (March 8). Corn and soybeans are trading near multiyear highs.

Food protectionism

…click on the above link to read the rest of the article…

Largest UK Supermarket Warns “Worst Has Yet To Come” Amid Food Inflation Crisis

February 8, 2022

Largest UK Supermarket Warns “Worst Has Yet To Come” Amid Food Inflation Crisis

Britain’s largest supermarket chain warned “the worst is yet to come” on food inflation as the cost-of-living crisis pulverizes the working poor.

John Allan, chairman of Tesco Plc, told the BBC’s Sunday Morning Live that low-income households have difficulty choosing between food and heat this winter. Budgets are tight, triggering a ‘winter of discontent’ if widespread inflation doesn’t diminish.

“In some ways, the worst is still to come – because although food price inflation in Tesco last quarter was only 1%, we are impacted by rising energy prices. Our suppliers are impacted by rising energy prices. We’re doing all we can to offset it … but that’s the sort of number we’re talking about. Of course, 5%,” Tesco’s Allan said.

He said food and energy inflation would change consumer spending patterns, buying fewer luxury goods and big-ticket items and going out less to eat. Food inflation comes as households experience one of the most significant jumps in annual energy costs in years.

“It troubles us, and I’m sure troubles many people, that people may have to struggle to choose between heating their homes and feeding their families,” he said. “And that’s clearly not a situation that any of us should tolerate.”

For some context for our international readers, Tesco controls about 28% of the UK grocery market. So when Allan speaks about the worst of the food inflation has yet to come — it’s very concerning that food price hikes might continue well through spring. It’s still unknown the social ramifications of high inflation.

Food prices globally are at decade highs, likely to hit new records by spring.

…click on the above link to read the rest of the article…

Labor Shortage And Surging Shipping Costs Are Biggest Drivers Of US Food Inflation

January 16, 2022

Labor Shortage And Surging Shipping Costs Are Biggest Drivers Of US Food Inflation

Setting aside the ever-present issue of the global supply chain crunch presently gestating in the PROC, where factories and ports are struggling with the most restrictive lockdown measures since the (Fauci-funded) “China virus” first burst forth out of Wuhan, the US is still facing serious shortages of workers and critical goods like foodstuffs and medicine.

The US labor market disappointed once again in December, while November’s similarly disappointing number was revised up only slightly. Meanwhile, those who are working are struggling with the fact that inflationary price pressures are hammering real wages. And regardless of what the Fed does next, it appears kinks in the economy created by COVID and the federal government’s response to COVID will continue to push food prices higher for the foreseeable future, as Reuters reports.

Already, growers across the West and Midwest are paying 3x the freight costs from before the pandemic – all to guarantee shipment of perishables like berries and lettuce before they spoil.

Some companies are even holding back on shipping certain goods (like long-lasting onions) to see if shipping costs might ease.

Shay Myers, CEO of Owyhee Produce, which grows onions, watermelons and asparagus along the border of Idaho and Oregon, said he has been holding off shipping onions to retail distributors until freight costs go down.

…click on the above link to read the rest of the article…

Food Inflation Is the 2022 Crisis, Not Supply Chains

November 23, 2021

Food Inflation Is the 2022 Crisis, Not Supply Chains

The real trouble will start when this year’s energy crisis morphs into next year’s food inflation problem.

We’ve all become armchair inflation experts. And why not? It’s almost impossible for anyone to keep getting it as systematically incorrect as professional economists have done this year.

It’s time for the conversation to move beyond the current obsession with eye-catching headline numbers. That we’re in a global inflation regime of a kind not seen for decades, is beyond doubt.

Interest in supply chains is at a 17-year high, according to Google Trends, but it has become a red herring when it comes to forecasting the persistence of inflation.

Supply-side constraints are usually a key initial catalyst in any price spiral. And it’s intuitive that the vast majority of supply-side issues are “transitory” in nature as supply eventually responds to higher prices. So, while it’s good to know when supply-side pressures will ease, that knowledge isn’t sufficient to conclude when the broader inflation threat will pass.

What we need to establish is whether demand will take over in leading the inflation charge. And, for that purpose, inflation expectations are critical. As measured by breakeven rates, U.S. 5-year expectations have breached 3% for the first time in at least 19 years. The U.K. equivalent is well above 4% for the first time in records going back more than 25 years.

Expectations of higher inflation have the double impact of encouraging people to front-load spending, further pushing up prices, as well as the more important effect of laborers demanding higher wages, thereby both directly increasing costs and the future pool of capital allocated to demand.

…click on the above link to read the rest of the article…

Fertilizer Prices Hit Record Highs, May Pressure Food Inflation Even Higher

October 11, 2021

Fertilizer Prices Hit Record Highs, May Pressure Food Inflation Even Higher

Fertilizer prices have risen to a record high in North America, threatening to boost food inflation even higher. Nitrogen products are increasing due to the cost of natural gas, which is used in the manufacturing process.

The Green Markets North America Fertilizer Price Index soared to a record high last week of $996.32 per short ton.

The fertilizer market has been roiled by hurricanes, plant shutdowns, sanctions, and shortages of natural gas in Europe and China, pushing nutrient prices sky-high, which will raise the cost of production for global farmers. Here are global fertilizer prices zooming higher:

Fertilizers play an essential role in crop development for producing enough food for the global economy. The soaring costs of nutrients plus rapid food inflation will have the most severe economic impacts on emerging market economies first because low-income folks allocate a more significant part of their incomes to purchasing food. This week, the Food and Agriculture Organization’s global food index hit a new decade high, driven by gains for cereals and vegetable oils.

Expensive fertilizer will push production costs higher for farmers worldwide, which will continue to increase food inflation.

Benefiting from rising fertilizer prices is CF Industries Holdings Inc., the world’s second-biggest fertilizer company.

Tag Archives: food price inflation

Content

Post categories

Economic Links

Energy/Resource Links

Environmental Links

Geopolitical Links

Liberty Links

News Links

Other Links

Survival Skills

Post Archives by Category

Post navigation

Latest Posts