Global economy
Marzo 19, 2021 - < 1 min

The specter of food inflation

Rising food prices

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Brazilians have many reasons to worry. The pandemic continues to hit them and they have the fourth health minister of this government, while unemployment continues to rise. And, in addition, beans or black beans, a staple of their diet - and of the delicious feijoada - have risen 54% so far this year.

The explosive increase in the price of black beans in Brazil is part of a worrying global trend: food inflation. In Russia they are paying 61% more for sugar than a year ago. Even corn tortillas in Mexico have begun to rise, despite the Mexican government's efforts to keep them in check through an agreement with producers.

The phenomenon, which according to industry players will worsen during the year, is due to a series of factors, such as climatic problems that have affected production in some areas of the world, an increase in demand with the reactivation of the economy, and problems in the supply chain that will take some time to normalize. The most affected are lower-income countries, where the weight of food in the consumption basket is much higher than in developed economies.