• The price increases now are the biggest in 13 years
Bread and flour are among the most expensive this year. Food prices rose an average of 5,25% (from 4,2% in September), pushing the consumer price index up to 7,9%, well above the survey's average estimate of 7,05% Bloomberg. This year's price increases are the biggest in 13 years.
In the top 10 food products that registered the biggest price increases last month are bread, flour, cream and bakery products. The biggest price increase is found in oil.
Top 10 price increases in food products. Bread and flour, spectacular increases
In the top 10 price increases of food products in October 2021 compared to October 2020, there are four bakery products:
1. Edible oil – 126,29%
2. Potatoes – 118,04%
3. Margarine – 108,68%
4. Other vegetables and canned vegetables – 107,04%
5. Sheep cheese (telemea) – 106,92%
6. Bread – 106,84%
7. Malai – 106,57%
8. Flour – 106,46%
9. Fresh fish – 106,32%
10. Bakery products – 106,27%
The price of wheat exploded on international exchanges
Predictions show further price increases in bakery to come. This after the price of wheat reached a record level internationally, the highest in the last eight years. In addition, energy and natural gas rates have skyrocketed. The price of wheat exploded, last week, on the international stock exchanges, and bread and bakery products producers in Romania expect new price increases to be felt in the country as well.
Cezar Gheorghe, grain trade analyst, explained to Digi24 the reasons for these price increases. "The pullback from the price hike will be felt in 2-3 months time because at the moment let's say the supplies are being made to the processors and there is no danger of an immediate price hike," he said. "But it will come as a setback, because prices have gone up a lot, because Saudi Arabia entered an auction and bought in one transaction about 1,3 million tons. It was the highest level of a single transaction, which happened only once", explained Cezar Gheorghe.
At the moment, stocks in the world's 7 largest exporters are at their lowest level in the last 8 years, while wheat trading this year will rise to the highest level in the last 6 years, the analyst believes.
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