As you may have noticed food prices are going up rapidly, but what is the reason and what is the cause for this economic disaster? You may have thought that you have been overspending recently, sadly it is true that globally grocery shopping prices are at an all-time high. How can we survive, and feed our kids and ourselves, and is there anybody to blame for this issue? Electricity and petrol prices have been increased too, is there a connection between this or is this a distinct matter? Let’s find out more about these problems below, stating specific reasons as to why it is currently happening.
What Are the Reasons?
What is causing the drift from lower prices to higher this year? There are a few reasons why it has happened. The war in Ukraine with Russia is being implanted as one of the bigger causes for this. The re-appearance of Covid in China is also a part of the issue. It was estimated that the invasion of Ukraine by Russian soldiers has already increased the cost of food, however when the war eventually came into place the food prices have gotten even worse than during the invasion. Steve Murrells the Co-op chief executive has stated that with the current times and if it stays the way that it is, chicken could become as expensive as beef, which just shows how severe the grocery shopping prices have gotten. Nando’s chicken fast-food chain has increased in April of this year. We may also have COVID-19 to blame for the shortage of products as exports were not allowed to travel to other countries to deliver certain products. Farmers also suffered as they have to let their fruit and vegetables rot at the beginning of the pandemic, because they did not have anybody to export these foods to elsewhere. Therefore, it is unavoidable; the questions remain how long will it last and, will the prices increase even more due to another world conflict?
Low-income and Vulnerable Families
According to BBC News, the Asda Chairman has stated “food prices are going to go higher, and they are going to stay high for quite some time”. It was pointed out that prices will reach 8% higher than before this spring. This puts pressure on low-income and vulnerable families. It was said that families now are struggling as food prices are not the only thing increasing in price. It was highlighted that 90% of Asda staff were concerned about how they were going to make ends meet for themselves and their family in this difficult time. As Mr. Kwarteng stated as the Business Secretary, he was unsure of how long this will go on, however, he knows that it is a struggle globally. Government plans to reduce price inflammation by creating more jobs for individuals to make more financial profit to be able to support themselves. The economy globally has suffered due to these world conflicts and has seen a dark road ahead this year prices increasing. It may be a while before we see a change in the food market. If the war in Ukraine is still taking place and Putin’s determination to control and own Ukraine’s land has kept going, the prices will stay the way that they are just now. There is not anything we can do to control it, as this is a matter out of our control.
Spending Less
Shoppers are certainly careful with spending their money at supermarkets as of currently. They try and use their Clubcard’s or discounts to reduce the overall price, as it was reported to have increased to £730 million for a year compared to just £357 a year before that. Supermarkets are desperately trying to reduce the prices for their customers yet failing to do so as their food suppliers ask for more profit in return. This is how this vicious cycle is kept in place. Sainsbury’s is ensuring its customers that their prices are lower in comparison with other supermarkets, this encourages individuals that there may be still some hope and we can shop cheaper somewhere else. We still have the option, we still have some control over our spending, which does give us the freedom we need. It was said that Sainsbury’s lowered the prices of 150 of its fresh products last week to allow low-income families to afford these foods. There was a shortage of sunflower oil, this is because Ukraine exports this to other countries usually, however supermarkets have been keeping up with the changes and offered alternatives to sunflower oil to their customers in their supermarket.
In conclusion, we can only try and await the drop in food prices. However, for now, we must try and shop in supermarkets such as Sainsbury, Aldi, and Lidl, where there remain much cheaper options in comparison to Asda and Tesco. It is a difficult time for us all, as some individuals may have also lost their job due to the COVID-19 pandemic, due to the closure of shops and factories that bankrupted were due to major financial loss from the pandemic that lasted two years. It has left a mark on every country, that is still rebuilding their town centres right now, and we can only help and support each other through tough times and wait what the government’s actions towards this will be.