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Home » How Does US Food Inflation Compare to the Rest of the World? Fascinating Map Reveals Which Countries Are Seeing Prices Rise Fastest

How Does US Food Inflation Compare to the Rest of the World? Fascinating Map Reveals Which Countries Are Seeing Prices Rise Fastest

by Koby John
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Food prices are outstripping the general rate of inflation in the vast majority of countries thanks to a series of global crises, new data shows.

Analysis by the World Bank found residents in Venezuela, Lebanon, Argentina, Turkey and Egypt were the biggest victims of food price inflation.

Researchers looked at the latest food inflation figures available for each country – between March and June 2023 – and identified those that had a rate of over 5 percent.

Its findings showed lower to middle-income countries fared worst, with 86.4 percent of these countries having reached the 5 percent threshold.

By comparison 52.6 percent of low-income economies, 64 percent of upper middle- income economies and 69.6 percent of high-income countries had hit the mark.

Food prices have been pushed up by several crises such as India’s rice export ban which saw prices of 20-pound bags surge from $16 to $50 in some stores.

Similarly, orange juice production has been hammered by crop disease and hurricanes in Florida – meaning prices are now triple what they were in 2020.

Russia’s invasion of Ukraine – and subsequent trade restrictions – also pushed up the cost of grain and fertilizer.

The United States had an overall food inflation rate of 5.7 percent. This is despite the fact the general rate of annual inflation has dropped to 3.7 percent and has remained below 4 percent since May this year.

America fared better than countries such as Canada and Australia, which had seen prices spike by 8.3 and 8 percent respectively. It was also much less affected than the UK which had a food inflation rate of 17.5.

However the US stood well above China and India which had seen costs go up by 2.3 percent and 4.6 percent each.

The World Bank’s Global Report on Food Crises 2023 Mid-Year Update shows 238 million people across 48 countries are now facing acute food insecurity since 2022.

The report notes: ‘There are three major drivers of food insecurity in 2023, including conflict, economic challenges and climate-induced weather extremes.

‘Following Russia’s invasion of Ukraine, trade-related policies imposed by countries have surged.

‘The global food crisis has been partially made worse by the growing number of food trade restrictions put in place by countries with a goal of increasing domestic supply and reducing prices.’

As of September 25, 19 countries have implemented 25 food export bans and seven have implemented 12 export-limiting measures.

The price of orange juice alone has tripled since the pandemic after weather conditions brought Florida’s orange production stalling to its lowest levels since 1937.

Frozen orange juice concentrate, a global benchmark for the market, rose to a record high of more than $3.50 last Monday.

Florida’s orange production has been impacted by two phenomena – greening disease and hurricanes, according to the US Department of Agriculture.

In July, the Department said it expected Florida to produce just 15.9 million boxes of oranges this year, down 70 percent from the 2020-21 season.

The oranges are also smaller than they have been in the past, according to the agency, meaning more fruit are required to fill boxes.

Source: Daily Mail

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