Bank of England Governor Andrew Bailey made the remarks during a parliamentary hearing in London on Monday Rising food costs could have “apocalyptic” effects on poorer sections of British society and the global economy as a whole.
Wheat prices rise, “Apocalyptic view”
– This is a serious concern not only for our country but for the developing world as a whole – Added. The head of the British Central Bank argued that countries should do everything possible to free up the flow of agricultural raw materials. It was primarily about ending the war and the siege of Ukrainian ports by the Russians. – There are food items in Ukraine, but currently they can not be exported Bailey explained.
These words did not come out of nowhere. On Monday, wheat contracts increased by approximately 6 percent. In the last 10 days, almost 20 percent.
India bans wheat exports
Over the weekend, India, the world’s second largest wheat producer, It banned the export of this agricultural raw material after the hottest month in history and in the aftermath of the Russo-Ukrainian war. Production fell by 3 million tonnes from 106 million tonnes last year, while prices in the domestic market rose by 20 to 40 per cent.
“Therefore, the Government of India should protect domestic products in the face of heat waves threatening crops. However, Indian Trade Secretary PVR Subramaniam assured that India would continue to export to neighboring Bangladesh, Nepal and Sri Lanka. With a consumption of 102 million tonnes, India is not a major exporter of wheat, however, the information that the country with such a large population protects its foodstuffs has raised concerns among investors in raw materials.
– The upward movement of wheat was further supported by higher fertilizer prices and poor harvests – They add.
The Russians are stealing grain
According to the estimates of the Ukrainian Minister of Agriculture, since the beginning of the war, the Russians have stolen half a million tons of grain from Ukrainian farmers. It came to light a few days ago. Total carriers loaded with stolen grain leave the Russian-occupied Crimea for the world. Often, a ship with such a load can be seen in new satellite photos from a port in Syria.
What effects could this have on the world? Type of speech by Andrew Bailey – Sad. As we wrote in money.pl, The ban on grain exports from Russia and Ukraine could lead to a severe food crisis. Especially in Africa, sometimes in countries where it is 90 percent. They rely on Russian wheat imports.
– There is not enough food in the world. Enough for him to feed people twice. The problem is not scarcity, but speculation in international markets – “Money. For the number,” the professor said on the show in March. Andrzej Poles of the University of Wroclaw.
The problems are already visible in Poland
We can feel the words of the President of the Bank of England in Poland. Since the start of the war in Ukraine, the country’s economists have been most concerned about food behavior. Inflation has taken deep and deep roots in our country and is spreading to the entire market of services and goods.
Data from the Federal Bureau of Statistics, which we learned last Friday, confirms this. April reading 12.4 percent. It was the highest since May 1998 and for 13 months it was significantly higher than the ceiling for deviations from the NBP inflation target (3.5% per annum). Fuel prices have risen 27.8% in 12 months. They were hit the hardest by rising energy prices (27.3%). However, it was worse with food, which increased by 13.2 percent. Every year.
The most remarkable thing Strong increase in meat prices. In one year, the number of poultry has almost halved, and in the last month alone – 14.4 percent. Beef prices rose 6.4 percent in a month and nearly 30 percent a year. For pork, it is 12.1 and 15.6 percent, respectively.
Sugar reading is bitter. In one month, its price increased by 8.8 percent, compared to April 2021 – exactly 35 percent. About 25 percent. For more than a year, you have to pay for flour, bread and butter. The following are increasing at double-digit rates year on year:
- Rice (13.6%),
- Fish (13.3%),
- Milk (12.8%),
- Cheese (12.5%),
- Eggs (14.4%),
- Vegetables (12%).
Inflation will not decrease in our country
Credit Agricole economists, for example, expect it Headline inflation will be 12.4%. Year-on-year 2022 and 7.4 percent in 2023
We expect inflation to peak at 14.3% in June. In our scenario, we assumed that the period of the anti-inflation shield would be extended until the end of 2023. If the shield expires earlier (in August 2022 or January 2023), our estimate is that inflation will exceed 16%. In the summer of 2022 And will be about 9 percent. Annual average in 2023. We believe the government wants to avoid creating such a situation in view of the planned parliamentary elections in 2023 – we read in a recent report by the French bank.
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