How does inflation have an effect on the costs of on a regular basis items?

How does inflation have an effect on the costs of on a regular basis items?

Prices soared with the end of confinements by covid and the beginning of the war in Ukraine

Prices have soared with the end of confinements due to covid and the beginning of the war in Ukraine and, according to the IMF, world inflation will reach 8.3% this year. How will homes be affected?

Fuel

Since the beginning of the war, oil prices have skyrocketed, as Russia is its third largest producer in the world. The barrel of Brent, from the North Sea, was close to US$ 140 before returning to US$ 100. At the close of Monday, the value of a barrel of this reference oil closed at a high of US$ 92.

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The rise in oil has fueled gasoline prices, topping €2 a liter in March in France, Germany and the UK and $5 a gallon (3.78 liters) in the US in mid-June, a pace that has slowed. in the last few weeks.

The same happened with oil and gas: energy is by far the main component of inflation in the eurozone, with an increase of 38.0% year-on-year in August, according to Eurostat figures published this Friday.

This has repercussions on the entire economy, by increasing the production costs of companies. The situation is so critical that some factories have closed to avoid very high expenses.

Pasta, beans and tortillas

Ukraine is considered the “breadbasket of Europe” and its invasion has sent grain prices soaring, pushing wheat to record levels in March.

Pasta has also become more expensive. In May, Allianz estimated a 19% increase in output in the euro zone over the past 18 months.

In Canada, a major wheat exporter, the 500-gram packet of pasta rose 60 cents in a year to 3.16 Canadian dollars (US$2.39), according to official figures.

In Thailand, the popular instant noodles were frozen in price by the government after rising in August for the first time in 14 years, from 1 baht ($0.03) to 7 baht.

Derived from corn, the kilo of tortilla, a staple food in Mexico, increased by an average of 2.79 pesos (US$0.15) between January and mid-September, according to official data. It is one of the products that most influence the country’s inflation.

In Brazil, carioca beans cost 22.67% more in August than a year earlier, according to the National Price Index.

Meat

With the rise in grain, it became more expensive to feed cattle and, thus, the price of meat also rose.

Pork, the most consumed meat in China, increased by 22% a year in August. The Xinhua agency announced on Friday that the authorities had drawn on their strategic reserves of this food for the second time this year to stabilize the price.

In Argentina, ground beef, popular for its traditionally low prices, rose 76.7% year-on-year. The country suffers from one of the worst inflation rates in the world, at 56.4% in the first eight months of the year.

In Europe, the price of birds has increased especially because of the avian flu. In August, the price per 100 kilograms of chicken rose by 33% year-on-year, according to data from the European Commission.

Beer

Inflation also reached ‘happy hour’: beer was affected by the rise in barley, wheat and also aluminum in cans and glass in bottles.

These drinks became “70% more expensive than before the war” in Ukraine, according to the ‘Brewers of Europe’ association.

The Dutch Heineken indicated an average increase of 8.9% in the first half. According to Bloomberg estimates, the Belgian-Brazilian AB InBev (Corona, Budweiser, Quilmes…) increased its brands by 8%.

In the UK, the price of beer topped £4, the highest level since 1987, according to its national statistical agency.

newspapers

Paper has also become more expensive. Its manufacture requires a lot of energy and its price has increased with the resumption of activity after the confinements.

French newspapers like Le FigarO, L’Humanite and Le Point have increased in price by a few tens of euro cents since January.

In the UK, publications such as The Sun, The Times and The Sunday Mail also announced increases.

Others have chosen to reduce their pagination. Worldwide, newspaper prices rose by around 6.5% in July, according to Eurostat.

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