April 16, 2024

Athens News

News in English from Greece

Expert: 2023 will be a year of crisis "cost of living" – concerns about food prices

Georgios Atsalakis, Associate Professor at the Technical University of Crete, in his new study presented by iefimerida.gr, speaks of “hard times” to come.

As oil and gas prices rise amid Russia’s escalation in Ukraine, consumers around the world are already facing the immediate effects of the crisis. In addition to the emergence of energy instability, 2022 is also the year an unfavorable food security situation.

Food security is an element of the state’s national security. A situation in which all people, at all times, have physical and economic access to sufficient, quantitatively safe food to lead an active and healthy life.

Previously, the lowest price for wheat was $85.3 per metric ton in July 1999 and the highest price was in March 2008 at $419. In July 2021, the price was $197, in May 2022 the price reached $438, that is, it increased by 131% in 10 months.

Export bans will drive up prices even further and cause markets to panic

“The increase in grain prices has so far included the risk of uncertainty due to the situation in Ukraine. Cereal prices have not yet taken into account increases due to cereal shortages, reduced production (due to adverse weather conditions), and due to restrictions that many countries impose on their food, prohibiting exports. “Export bans will drive up prices even further and cause markets to panic as 80% of the world’s population lives on imported food,” the expert says. To date, about 30 countries have introduced a ban on the export of grain and other food products, such as India, Kazakhstan, Kuwait, Egypt, Indonesia, Argentina, Algeria, Iran, etc.

According to Mr. Atsalakis, states should not be afraid to resort to bulk purchases of imported food: “There are signs that the Russian invasion of Ukraine will soon stop, which will help keep prices from falling further due to the war and restore Ukrainian exports of unavailable reserves.” , – writes iefimerida.gr.

The Greek scientist notes in his new study: “Rising inflation pushes up all prices and especially for basic necessities. 2023 will be a cost-of-living crisis year for a large portion of the population as rising prices for basic necessities of life, both food and energy, will eat up much of household income.” As for 2024, after 28 years of growth, this will be the peak year of the global economic cycle, followed by several years of visible stagnant inflation, with no or cachectic growth on the verge of inflation.

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