- Although food inflation is decreasing, historical data still shows that food prices remain high.
- The UN’s Food Price Index dropped for the sixth month straight in September but was still at 5.5% year-over.
- Aside from raw material prices, other factors — such as labor costs — also affect food prices.
Good harvests may help reduce inflation in the future, but it does not mean that food prices will fall, Tiff Macklem said on Sunday.
“I’m actually hopeful that at least food inflation — which isn’t quite the same thing as food prices — is going to come down because in Canada and a number of other countries that have been reasonably good harvests,” Macklem told government-funded CBC RadioInterview about Canada’s cost of living
His comments were made just after the United Nations Food and Agriculture OrganizationFriday’s data showed that the index for food prices fell for the sixth consecutive month in September. Although the March index was at an all-time high, it still fell 5.5% in September.
The slowing of global growth, seasonal factors and other factors have all contributed to the decrease in food inflation. UN-brokered Deal with TurkeyAccording to a blog posting from the International Food Policy Research InstituteSeptember 27.
However, “we’re not out of the woods yet,” the researchers wrote, adding that international food prices remain “high by historical standards, markets remain tight, and high price volatility continues — especially for wheat and maize.”
According to UN, wheat prices rose by 2.25 percent in September as a result of worries about weather in Argentina and the US.
Prices for American food and drinksAccording to The, they also increased by 13.5% in August compared with a year earlier. Bureau of Labor Statistics.
Food prices are affected by many factors. Apart from the price for raw materials, there are also other factors. Economy-wide issuesThey all contribute to the food price, including supply chain snags as well as energy and labor costs.
Uncertainty about the Global food supplyIt is expected that it will continue into next year. The war in Ukraine is likely to continue with “no end” in sight, meaning that Ukrainian farmers will likely plant less wheat in the fall. Research from the International Food Policy Research InstituteAccording to the September Report.
Macklem, Bank of Canada, highlighted the difficulties of forecasting volatile commodity price movements.Macklem said that they are influenced largely based on global events, which Macklem stated to CBC Radio.
