Bloomberg’s new report, “The Grocery Price Shock Is Coming to a Store Near You” issues a grim warning about inflation caused by the Coronavirus Disease 2019 (COVID-19) pandemic, which is expected to worsen in the near future.
“The most recent crop spikes follow months of price gains fueled by booming import demand from China… With China’s purchases continuing and a spate of adverse weather conditions threatening crops in Brazil and the U.S., there are few signs of respite. Analysts including those at Rabobank, Mintec and HSBC Global Research all see a risk of even higher prices as a result, though it will vary across markets,” Bloomberg reported.
Bacon and other expensive cuts of meat in America, tortilla in Mexico, beef in Brazil, and palm oil in Myanmar have all recently surged in price, impacting the poorest most severely. The Bloomberg Agriculture Spot Index recently peaked at the highest number in almost nine years. Prices of the world’s most popular food commodities such as corn, wheat, soybeans, and vegetable oils have risen and are expected to continue climbing.
“There seems to be sort of a bullish force behind the prices internationally,” Abdolreza Abbassian, senior economist at the United Nations’ Food and Agriculture Organization, said in an interview. “The indications are that there is very little reason to believe prices would remain at these levels. It’s more likely they will rise further. Hardship is still ahead.”
Natural News points out that while local farmers will enjoy greater profits from rising prices, “a bevy of other consumer goods including raw materials such as lumber — needed to build houses and businesses — are also rising, along with energy costs as the world attempts to recover from being ‘closed’ due to the pandemic in an unprecedented over-reaction.”
The article concludes, “the economy under President Trump was heading in the right direction. There were more than enough jobs, prices were stable, and our GDP was rising.” Under the current administration, based on the Bloomberg report, JD Heyes of Natural News believes that the economy will continue to suffer.
“The relentless rise in prices acts as a misery multiplier, driving millions deeper into hunger and desperation,” Chris Nikoi, the World Food Programme’s Regional Director for West Africa said earlier this month. The current rise in prices is “pushing a basic meal beyond the reach of millions of poor families who were already struggling to get by,” he said.
Meanwhile, the wealthiest Americans have become $195 billion richer in the first 100 days of the Biden administration due to the COVID-19 vaccine rollout, stimulus spending, and a rising stock market. “The threat of food inflation is making governments nervous. Russia, one of the world’s top grain exporters, has ordered a freeze on some retail food prices while taking steps to curb shipments. Bolivia has temporarily banned exports of beef to safeguard supplies at home and put a lid on prices,” according to Bloomberg.
“Generally people see this inflation continuing,” said Tosin Jack, an analyst at Mintec, which monitors commodity prices. “The trend will continue for some time and it will translate into consumer goods.” Global food prices have been surging for the last ten months. “The surge is stirring memories of 2008 and 2011, when spikes led to food riots in more than 30 nations across Africa, Asia and the Middle East, and contributed to political strife and uprisings in the Arab Spring,” Bloomberg reported.