Global Food Prices Set to Skyrocket

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2014

Joe Biden inherited an America that was energy independent. Oil and gas production was booming. Now Americans are facing an America with skyrocketing oil and gas prices that are sure to make the trip to the grocery store more “Hunger Games” than “Super Market Sweep.”

New reports indicate that food prices will reach crazy new levels as the price to heat our homes increases simultaneously.

According to OilPrice.com:

Related: A Cold Winter Could Double Natural Gas Prices And Send Oil To $100 But what does this trend mean for other industries? As well as rising fuel prices, we are seeing the cost of food and drink increase, with average food prices hitting a decade high and costing around one-third more this September than last. Fuel costs cannot be blamed as the sole catalyst in rising food prices, as harvests hit by hot weather and Covid restrictions, an increase in global demand – with a dramatically cold 2020 winter and hot 2021 summer, and disruptions in the supply chain, are also to blame. But if transport and farming costs continue to rise, our food bill is likely to keep climbing. 

With globalisation meaning our food no longer comes from the local farm but is mostly shipped across the globe, as well as the rising price of fertilisers, the food supply chain is finding it hard to maintain stable prices. 

Abdolreza Abbassian, Senior Economist at the UN’s Food and Agriculture Organisation’s told Bloomberg, “It’s this combination of things that’s beginning to get very worrying,” “It’s not just the isolated food-price numbers, but all of them together. I don’t think anyone two or three months ago was expecting the energy prices to get this strong.”   

But the food supply chain is not the only thing we have to worry about when it comes to the knock-on effect of high oil prices. Any industry that relies on oil for fuel, fertilizers, petrochemicals, or any number of other related products is going to feel the pinch in the coming months, if they don’t already. This means the cost of many of our household products and basic expenses could soon increase. 

Everything that moves uses fuel of some kind, so expect your Christmas presents to cost more in the near future as well.

The really scary thing to think about is when prices go up for inflation and consumers assent to them, do they ever go down?