The deteriorating supply chain due to the Corona epidemic has not yet come back on track. At the same time, inflation is breaking the back of the people. According to the United Nations, food and drink have become expensive by 30 percent in a year. The main reason for the increase in prices is increase in demand and weak crop. According to the United Nations Food and Agriculture Organization (FAO) index, prices rose for the third consecutive month in October. Inflation increased by 3% in October as compared to September.
This inflation was due to sharp rise in the prices of edible oil and wheat. The FAO Food Price Index tracks price movements on a monthly basis. The index has gained one-third in a year. Inflation is at its highest level since July 2011. Wheat has grown 5% in October itself, as the crop is weak in exporting countries such as Canada, Russia and the US. Other oils including palm, soya also became costlier by 9.6%.
The global economy is badly affected by Corona. According to the IMF, global inflation could rise to 4.8% this year, the fastest growth since 2007. But prices in emerging markets can be much higher than in rich countries. Argentina, Brazil and Turkey are suffering from this. Inflation is 10.2% in Brazil, 19.9% in Turkey and 52.5% in Argentina.
- Food supply, prices are expected to rise due to severe weather. Also, there is a possibility of problems due to deteriorating supply chain, shortage of workers, rising costs.
- There is a labor shortage in Britain after Brexit.
- There are no migrant workers in Malaysia. Palm oil production is disrupted.
- Prices of milk powder, poultry, barley items are not expected to come down.
- Germany, South Korea helpless, China inflated in October
- According to the food agricultural products data of China’s Ministry of Commerce, food prices increased in every week of October. Vegetables became costlier by 25%.
- Inflation in Germany is the highest in 50 years. It was 12% in August, rose to 14.2% in September. Such inflation was seen in Germany in October 1974.
- Inflation in South Korea has reached a 10-year peak last month. The consumer index was up 3.2% in October as compared to the same period last year.
- Relief here: Inflation in September stood at 4.35% due to the fall in the prices of food items in India. It was 5.3% in August. Earlier, inflation was above 5% for 4 consecutive months.