Food inflation: This is how a financial expert explains the causes and effects!

Food inflation: This is how a financial expert explains the causes and effects!

According to a report by www.merkur.de,
Most consumers will have noticed that food prices have increased significantly in recent months. But why is that? The consumer advice center looked into this issue and found that food became almost 17.2 percent more expensive between April 2022 and April 2023, with high inflation being one of the reasons for this. The consumer advice center has also found that inflation has been significantly above the general inflation rate since April 2022. In addition, certain foods became particularly expensive.

Compared to the previous year, oil, dairy products, eggs, flour, grain products and bread became more expensive. Fish and sauces as well as condiments were among the foods that increased the most in price. The reasons for this are varied and are related to high inflation, the Russian war in Ukraine, supply bottlenecks, labor shortages, minimum wages and high costs for energy, fertilizers and animal feed. The consumer advice center draws a gloomy forecast: “In all likelihood, food prices will only fall slightly.”

The facts from the article clearly show that the rising food prices have various reasons that affect the entire market and consumers. High inflation and the associated cost increases in the agricultural and food industries have contributed to the price increases. The impact on the market could lead to further price increases and create financial challenges for consumers. The unexploited possible solutions and forecasts suggest that the current food price increases could remain in place in the future. This represents a major burden for consumers.