The prices of the staple foods they broke a historical record during 2022, mainly due to the conflict between Russia and Ukraine that made it difficult for wheat, corn and sunflower tradereported the Food and Agriculture Organization of the United Nations (FAO).
for the reason that Ukraine it is the fifth exporter of wheat, while Russia is the first, both represent 30% of the world supply. Thus, at the beginning of the war, food markets plunged into an era of uncertainty. Just a few days after the start of the Russian offensive (on February 24), world food prices reached their “highest levels ever recorded” in March.
Along these lines, in 2022, the food price index, which follows the variation in the international values of a basket of basic productswas established at 143.7 points on average, “that is, 14.3% more than the average value of 2021”, reported the international organization.
The previous recorded record goes back ten years, in 2011, when there was a food crisis and famine riots in Africa, for which an index of 131.9 points was reached.
Consequences
The invasion of the main wheat producers in Europe has highlighted the fragilities and dependencies, especially in countries with fewer resources. This has led to fears of the start of a new world food crisis.
Although the worst scenario, with “hurricanes of famine”, as feared by the UN, was avoided thanks to the resumption of Ukrainian exports this summer, prices will remain high in 2023, always amid strong volatility. “World prices for wheat and maize reached record levels” in 2022, the FAO reiterated on Friday, January 6 of this year.
In the European market, wheat rose as high as 438 euros ($463) per ton on May 16, after starting 2022 at 270 euros ($285). With always abnormal volatility, it stood at around 315 euros (US$333) at the end of December, representing an increase of almost 17% in one year.
Along these lines, as Ukraine is also a major producer of sunflower oil, the average value of the vegetable oil price index of the FAO also broke a record throughout the year. For their part, the prices of meat and dairy products reached “the highest annual levels since 1990,” according to the UN agency.
Russian moves
It should be noted that the price of food fell again in April and has declined steadily for the past nine months. The December 2022 FAO Index, averaging 132.4 points, fell by 1.9% in one month and even dipped below its level of a year ago.
The tension eased further in July after the signing of an agreement to resume Ukrainian wheat exports to the Black Sea. A “corridor” hard negotiated under the auspices of the UN, which allowed 15 million tons of grains and oilseeds to be removed from the silos.
“It is good that food prices are calming down after two very volatile years,” said Máximo Torero, FAO chief economist, adding that it is essential to “stay vigilant and focus on mitigating global food insecurity.”
However, Torero warned that world food prices “remain high, with many staples close to record levels, rising rice prices, and many risks associated with future supplies.”
World wheat stocks are the highest among exporters, according to the firm Agritel, but 35% is in Russia, which has harvested more than 100 million tons of wheat, thus confirming its arbitrator position.
In December 2022, the vegetable oil price index decreased by 6.7% compared to November, falling to its lowest level since February 2021.
That of cereals decreased by 1.9% compared to the month of November, due to a greater availability of wheat after the harvests in the southern hemisphere and due to a drop in world corn prices.
Inflation data in Peru
For its part, inflation in Metropolitan Lima closed 2022 at 8.46%, the highest rate recorded in the last 26 years, since in 1996 it reached 11.84%. Likewise, in 2021 a rate of 6.43% was reached, the highest in 13 years, according to the National Institute of Statistics and Informatics (INEI).
Compared to the month of December, the Consumer Price Index, an indicator that measures inflation, increased by 0.79%. Thus, there was an increase in prices, especially for food and beverages, transport, restaurants and hotels, which explain 90% of its variation.
Source: Larepublica
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