WTF? Food prices expected to raise up to 50% in German supermarket.

[laredo7mm]

This war will have a significant impact all over the world. Not only Germany but also middle Western countries also facing food shortages and the price of food spiking up. Some Asian countries like Sri Lanka, and Pakistan also facing high prices for food even these countries can produce food for their population. People may fight the war on one side of the world but its consequences shake the whole world.

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[Fortify]

I am not sure that this is not a fake news, because it is in several digital media but not in any of the big ones. In any case, there is inflation all over Europe, and there will continue to be, but such a rise in supermarkets, if it materializes, should make the ECB think about what to do, since its main mission is to control inflation, and lately it had been a bit lenient with it.

'...the German trade association said that before the Ukrainian war, prices had already risen by 5% in Germany "for the entire product line" because of rising energy costs. Moreover, "the second wave of price hikes is coming, definitely by double-digit percentages." Aldi also expects German food prices to rise by 20% to 50% in the next few weeks. According to a survey recently published by the Ifo Institute, almost all German food retail companies plan to increase prices. "Germany's food supply is guaranteed for the foreseeable next year," said the German Agricultural Organization. "But beyond that time frame, it is difficult to make predictions. "'

Source: German food prices will rise sharply, Germans have to face a more impoverished life.

The problem with inflation is that there is no short-term solution to it. You have to have at least a medium-term vision to fight it and it cannot be based only on withdrawing liquidity from the market as the ECB plans to do. Energy policy also plays an important role, and the solution proposed to stop depending on Russian gas is more expensive.

With respect to the ECB, another problem that may be encountered is that of a catch-22 situation. After many years of giving massive amounts of drugs to the junkie, you cannot withdraw all the drugs at once, or the junkie will go cold turkey. Let's see how they do it without a major crisis.

This whole situation materialized because Russia decided to invade a peaceful neighbor, that is the fact which is never going to change. Putin decided that after 2 years of a worldwide pandemic crisis, the world should be plunged into another crisis with the first major war in Europe in decades. Not only did he cut Russia off, with an economy that heavily relies on exporting resources and commodities, he crippled one of the other biggest wheat & grain exporters of the world, so Russia will be contributing the many more people starving in the world. Europe may have a contraction, but due to relatively high living standards already, it is going to pale in comparison and the richest countries will suffer the least unfortunately.

[ololajulo]

There is a 20% increase in the price of gas and it is so significant in cost of production. More also the demand for fuel increased when the pandemic ended and restrictions were lifted, the government had been very careful with countering the inflation in the country. Purchasing power of citizens has gone bad and it has been surprising for a stable economy like Germany struggle with such bad economic trend for more than 6 months now

[Hydrogen]

Farmers in europe have protested negative conditions there for many years.

Greek Farmers on Tractors Protest 'Unbearable' Fuel, Fertilizer Costs

March 18, 2022

ATHENS (Reuters) - Hundreds of Greek farmers, some on tractors, protested in Athens on Friday, demanding more tax cuts and subsidies to combat high fuel and fertilizer prices which have soared since Russia's invasion of Ukraine.

The farmers, who staged weeks of protests over high energy prices earlier this year, say their costs are so high they will be forced to produce less and also raise prices for consumers.

The government has so far spent about 3.7 billion euros ($4.08 billion) since September to alleviate pain from soaring energy and fuel costs for farmers, households and businesses.

It cut a sales tax on fertilisers by 46% to 13% and on Thursday announced it would be lowered further, to 6%, and also announced a tax rebate on fuel for agricultural vehicles.

Farmers say the measures do not go far enough and everything has become too expensive, from fuel to animal feed.

https://www.usnews.com/news/world/articles/2022-03-18/greek-farmers-on-tractors-protest-unbearable-fuel-fertilizer-costs

Now it seems, negative financial issues farmers have can no longer be contained and are beginning to spillover into consumer markets.

Farmers in europe have been strained with difficulty remaining liquid for more than a decade.

Italian farmers protest against 'sub-quality' imported foods

Tue 6 Jul 2010

Demonstration sparked after imported batches of white mozzarella turned blue because of bacterial contamination

Thousands of Italian farmers and farm activists today gathered at the Italian border with Austria to protest against the importing of what they said were sub-quality foods purporting to be from Italy.

The protest, at the Brenner pass through the Alps, was sparked by the blue mozzarella scandal, in which imported batches of the creamy white cheese – a food Italians consider to be one of their country's hallmarks – turned blue because of bacterial contamination.

https://www.theguardian.com/world/2010/jul/06/italian-farmers-protest-imported-food

As an american, I remember seeing many clips on youtube of european farmers protesting in their tractors. Over a long span of years.

Unfortunately, I do not remember exactly what the fundamental motives were for the protests.

[arallmuus]

Now it seems, negative financial issues farmers have can no longer be contained and are beginning to spillover into consumer markets.

Farmers in europe have been strained with difficulty remaining liquid for more than a decade.

Its kinda expected to happen as a chain effect result of the covid strain. Government will eventually increase taxes to recover economy after the covid strain thus increasing the price of of some other necessities in several sector including agriculture. Farmers will be forced to to reduce their quantity and increase the price because of this and the whole customer chain will be taking the effect of the food price increment

[Findingnemo]

This is just the result of what government did when covid hit us in 2020, all they just did is printed more money and liquidated them into the market to keep the circulation of money in the economy but as a result of this we can see further hike in the price, even I noticed some products prices are doubled in the last 2 years.

[bakasabo]

As an american, I remember seeing many clips on youtube of european farmers protesting in their tractors. Over a long span of years.

Unfortunately, I do not remember exactly what the fundamental motives were for the protests.

I think you remember 2019, when farmers of Germany protest against updates in agricultural policy.

My local news page shows weird article today. EU is worried about their economy being choked by high fuel prices and drops in sales market . But isnt it what they created such situation by themselves? First they nominate sanctions, and move away from huge Russian market, now they complain that they dont know where to sell their goods. I told that sanctions is not the best option to solve war conflict.

[Wind_FURY]

This war will have a significant impact all over the world. Not only Germany but also middle Western countries also facing food shortages and the price of food spiking up. Some Asian countries like Sri Lanka, and Pakistan also facing high prices for food even these countries can produce food for their population. People may fight the war on one side of the world but its consequences shake the whole world.

It's just starting ser. After more months of this, the cabal will have no choice and definitely need to raise the rates and cause a recession to control inflation. BUT it wouldn't be enough, it's too late. All the will cause is STAGFLATION in some countries like Turkey/Venezuela, a recession + inflation. Screencap this post if I'm right, I'll delete it if I'm wrong. Hahaha.

[LoyceV]

should make the ECB think about what to do, since its main mission is to control inflation

I don't think there's anyone left within ECB who remembers their mandate. Isn't 50% close to the increase in money supply over the past few years?

lately it had been a bit lenient with it.

That's one way of putting it! I'd say they're nuts

With respect to the ECB, another problem that may be encountered is that of a catch-22 situation. After many years of giving massive amounts of drugs to the junkie, you cannot withdraw all the drugs at once, or the junkie will go cold turkey. Let's see how they do it without a major crisis.

But the longer you wait, the more it's going to hurt.

But... do you expect solutions from... ECB? What solutions? More paper money?! That happens anyway, since instead of the planned reduction of inflation, will be an even bigger rise of that.

It's ECB's solution for anything. Credit crisis? Brrr! Pandemic? Brrr! Climate change? Brrr! Inflation? Still Brrr!

I would prefer a reduction in public spending, as raising taxes, especially in this context, further stifles the productive sectors and consumption.

Governments are still spending more because of Covid, and my country is planning even more large expenses (mainly for climate policies).

It is because of Rising energy cost.

Something tells me this is only the beginning. Sure the current geopolitical situation has increased shortages, but long-term EU emission goals for 2050 and even for 2030 mean we'll have to consume much less fossil fuel. I've already seen memes about it. Those goals are unrealistic or at least very expensive.

[Lucius]

Something tells me this is only the beginning. Sure the current geopolitical situation has increased shortages, but long-term EU emission goals for 2050 and even for 2030 mean we'll have to consume much less fossil fuel. I've already seen memes about it. Those goals are unrealistic or at least very expensive.

It was an idea, but I do not see how the EU will be able to achieve these goals within these deadlines, especially if it has to speed up the process at the moment in order to get rid of its dependence on Russian oil and gas. I think that some kind of turnaround will have to be made towards increasing the production of energy from nuclear power plants, which might mean building new ones.

A few days ago I read the news that the UK plans to build several new nuclear power plants in response to the current crisis, and despite the EU's resistance to nuclear power, this seems like one of the proposals to be considered. As far as gas is concerned, the only logical choice is to build LNG terminals in strategic places in the EU, ie to upgrade the already existing infrastructure.

[DapanasFruit]

Inflation has been affecting my own country in the middle part of the fight against Covid-19 as supply chain became disrupted and many producers are getting out of business for different reasons. Sadly, this is affecting the poor more than the rich as prices of foods are starting to move up. Now, with the coming in of Russian invasion in Ukraine, things started to spiral out of control as here in my country we are almost 100% dependent on imported oil and it is an important part of the cost of any business. The same situation is now affecting USA and in this case the European zone with Germany as a big example. Certainly, people are complaining but for now there is nothing we can do but bear the burden.

[Wind_FURY]

Something tells me this is only the beginning. Sure the current geopolitical situation has increased shortages, but long-term EU emission goals for 2050 and even for 2030 mean we'll have to consume much less fossil fuel. I've already seen memes about it. Those goals are unrealistic or at least very expensive.

It was an idea, but I do not see how the EU will be able to achieve these goals within these deadlines, especially if it has to speed up the process at the moment in order to get rid of its dependence on Russian oil and gas. I think that some kind of turnaround will have to be made towards increasing the production of energy from nuclear power plants, which might mean building new ones.

A few days ago I read the news that the UK plans to build several new nuclear power plants in response to the current crisis, and despite the EU's resistance to nuclear power, this seems like one of the proposals to be considered. As far as gas is concerned, the only logical choice is to build LNG terminals in strategic places in the EU, ie to upgrade the already existing infrastructure.

I posted about something like that months ago, specifically in Germany. The fastest, most efficient and the cleanest, or "clean enough" way to generate energy in the E.U.is through Nuclear. That" if they want a real solution to be independent from Russian natural gas.

Plus by winter if the E.U. and Russia has not come to a resulotion with this "Ukraine issue", they better have the Rouble to pay Putin.

[fiulpro]

There are few things that can be attributed to the rising prices in Germany:
1. Disruption of the export and import
2. Rise in energy prices
There are few things that is hard to find in Germany now, basic things like :
1. Sunflower oil
2. Flour
These things are mainly increasing in the prices due to the Ukraine Russia war, which is not going to get solved that soon, even if the government of Moscow agreed verbally on ceasefire few days back, I do not think that Ukranian is almost ready to forgive them.
How the prices can be stabilized?
1. Different countries to import from they might have to make newer deals since the sanctions would be permanent as stated by the EU
2. Trying to make these things locally this would also provide new market for the farmers and provide other people some jobs
This is inevitable! Hopefully the government will take better actions.

[wxa7115]

I am not sure that this is not a fake news, because it is in several digital media but not in any of the big ones. In any case, there is inflation all over Europe, and there will continue to be, but such a rise in supermarkets, if it materializes, should make the ECB think about what to do, since its main mission is to control inflation, and lately it had been a bit lenient with it.


The problem with inflation is that there is no short-term solution to it. You have to have at least a medium-term vision to fight it and it cannot be based only on withdrawing liquidity from the market as the ECB plans to do. Energy policy also plays an important role, and the solution proposed to stop depending on Russian gas is more expensive.

With respect to the ECB, another problem that may be encountered is that of a catch-22 situation. After many years of giving massive amounts of drugs to the junkie, you cannot withdraw all the drugs at once, or the junkie will go cold turkey. Let's see how they do it without a major crisis.

If true that is a huge price hike, people can accept a 5% inflation on their food, they will not like it but they can accept this as a result of external factors, but a price hike of 20% to 50%? that is simply unacceptable no matter where you live.

And the fact this could happen at Germany of all places is worrying, if Germany cannot deal with the inflation then who on the EU can do it? And what about countries that always had issues with their inflation or their food supply? If that inflation actually happens then I think we can officially say governments have lost control over inflation and the world economy is bound to get in an even worse shape.

[Reid]

Covid pandemic + shortage of gas = inflation.
An economists would expect it but if an average Joe also knows it then time will just tell when the inflation will begin. It's not just Germany. My damn electric bill is going up every month and I am freaking out.
Our electric usage is the same, it's a routine. It even shows in the graph history of my monthly usage consumption. This is the time. They need the money back and people will pay for what they received for free in 3 years.

[avikz]

It can be solved if they are able to import oil from any other country. But US has imposed sanctions on Venezuela where they could have got cheapest oil. If I look at the previous data (2019), Russia accounts for roughly 27% of oil imports for EU. When such a big chuck of an import dries out, it pushes the price of everything dependent on oil. EU should stop being the puppets of US and UK. One has to remember that these two countries are responsible for most number of wars in the history of humankind.

I have also had this same thought of whether the EU should consider making their imports of gas from other countries that are known to be major suppliers of gas around the world. Based on research there are other countries that can as well supply gas to the EU, and these countries are as follows: US, Qatar, Algeria, Nigeria, Canada, Australia and Norway.

So, what I’m trying to know is whether the EU has been considering these other countries to become there major gas suppliers?  Currently, being cut off from Russian supply has been quite damaging to the economy for the countries in the EU.

It's high time for EU to start questioning US and their moves! The cheapest oil supplier in the world is Venezuela. US has imposed bans and various international sanctions to stop Venezuela from selling their oils to any other country. EU could have purchased cheapest oil from Venezuela but they are not able to do it for US. United States is a two faced entity. The faster people understands that, the better! They can go to any extent to save their dollar bills and they themselves are sitting on the world's largest oil reserve.

Inflation is a challenge for sure. But that's not the only reason for rising commodity prices. The commodity prices are increasing because oil price is increasing. Oil price has a direct effect on commodity price and that's what is happening! US is playing a big game to weaken the economy of EU indirectly and they are the sole responsible for the humanitarian crisis happening in Venezuela. 

[MinMan]

snip

I have to guess that the free lunch was not even given that much, it wasn't really given. This isn't really about pandemic, it is not about given free money, it is not about inflation all that much, it is about the fact that oil is something Russia has a lot of, and European nations do not have enough at all. Which means that we are talking about gas prices increasing a lot due to Russia war, and sanctions to them.

This results with food becoming more expensive because logistics of it became a bigger price as well. That's what I am guessing as the biggest problem, if Russia didn't attacked Ukraine, and there were no oil problems, inflation would have happened, but not this much.

[NeuroticFish]

I have to guess that the free lunch was not even given that much, it wasn't really given. This isn't really about pandemic, it is not about given free money, it is not about inflation all that much, it is about the fact that oil is something Russia has a lot of, and European nations do not have enough at all. Which means that we are talking about gas prices increasing a lot due to Russia war, and sanctions to them.

This results with food becoming more expensive because logistics of it became a bigger price as well. That's what I am guessing as the biggest problem, if Russia didn't attacked Ukraine, and there were no oil problems, inflation would have happened, but not this much.

Actually especially the gas prices have started rising well before the war. And it was not only because Putin was preparing for the war, no. It was because Russia has understood that Europe miscalculated its politics.

You cannot just get rid of coal based electricity and nuclear based electricity in one rather quick step if you don't really have something that's yours and can use instead.
Well, EU thought that they can rely on Russia's gas because, you know, Russians and so nice fellas.
Of course, a monopoly will rise its prices, not because they have to, just because they can and you have no other alternative than pay, no matter what.


So no, it's not only about the war. The latest mix of green plans, although the intentions were most probably good, was the seed for this disaster, from the ever rising prices to Putin thinking that the West, in the same way they pay for the gas, will also allow him take Ukraine to be his backyard.

[Captain Corporate]

 In Turkey, we have about a %100 increase in most stuff, even more in certain smaller stuff as well. A simple cabbage has like % a 400 increase, for example, it became news that people are selling "quarter" cabbages. This is cabbage we are talking about.
 
 If Germany is like that, I am not shocked by our nation is in an even worse situation, no wonder why. The gas prices need to go down, I do not know how we will do it but this can't go on, every single thing in life became way too expensive. At this moment nobody is focusing on living, we are all focusing on literally just survival. The economical situation in the world is not about how to get better or anything like that, its about how we won't be in huge debt before we die, that's where the horribleness reached.

[Gyfts]

20 to 50% seems pretty exaggerated.The food price growth will be more like 10-25%.
The European central bank must stop with the quantitative easing,but this might create big problems with the government debt of southern European counties like Greece and Italy.
Germany will have to re-launch it's nuclear power plants,in order to reduce the energy production by gas power plants.This will take some time.
I really hope that the war in Ukraine ends before June,so that Russia and Ukraine will be able to export grain and foods to Europe(if the western sanctions get removed).
The high levels of inflation in Europe and North America will continue in the next few years.

Before the war, 10-25 percent was realistic. Post-war, I don't think 50 percent is an exaggeration. Energy prices are too high and the German economy was restricted with COVID. These issue are compounding the global supply chain issues that were already in place so you can expect the bump in food prices.

What's concerning is that the formula Germany has going for them (COVID restrictions, high energy prices, global supply chain issues) essentially apply to every country in the world so the food shortages are not going to be isolated to just Germany.

People were labeled as alarmists for suggesting this type of possibility a year ago due to COVID without even having the war in foresight.