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

[Cling18]

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.

I wholeheartedly agree with you. The problem with inflation is that the government must exhaust all the possible remedies to combat the rising of prices. This may include issuing of government bonds, incentivizing spending, printing money, etc. (though the latter method is very risky).

Inflation is not bad perse, in fact, the government has a standard of inflation rate that must be controlled at a certain rate. If this goes out of control, prices of all commodities would increase and this could be dangerous to the economy of one's country- which is what happening in Germany.

Even some Asian countries are experiencing the same thing. The government is trying to solve this issue but they're just providing a short time solution which sometimes makes the situation worse. From the oil price hike to other necessities, poor people are suffering and the bad thing is, huge businesses are just taking advantage of it.

[Synchronice]

Food prices are quite low in Germany. If you cook yourself and don't eat at restaurants, at the moment €170/month is enough to eat normal healthy food. For €300/month you can have a great menu including meat, dairy, fruit, vegetable, bakery, sweeties, and fish. I am into bodybuilding and €300/month is enough for me to keep 40/40/20 Protein/Carb/Fat ratio and I consume 1.5 grams of protein per pound of body weight. My diet mostly includes chicken fillet, eggs, milk, oatmeal, fruit and vegetables.

In fact, in historical terms, food is cheaper than ever around the world thanks to mass production. But here the issue is that many people live paycheck to paycheck, and let's assume that a family that spends 400 euros on food, if food becomes 550 euros, they won't be able to make ends meet. They are going to have to buy cheaper things or cut back elsewhere if they can. This also means that people who spend a small amount of money on savings will not be able to continue saving. And let's remember that the rise in prices does not only affect food, it is generalized.

Unlike the USA, you won't get bankrupt in Germany if you need medical help, things work a little bit differently there. You give half of your earnings to the government, yes, half of your earnings when you have a normal wage. But at the end of the day, we have great public transport and social security. Do you need medical help? No problem, everything will be covered, you just need to chill and relax, doctors will take care of everything. You can choose your doctor for more comfort!
I have never used my health insurance, I am really serious , but most of my friends are satisfied with our healthcare system.

Some people won't be able to save money but it's the price we have to pay because of sanctions. Is it good in long-term? Definitely, the more independent you are the better.

I even think that it may be better if some of our habits change. Unlike Europe, in Asia families live together. Implementing of this habit can lessen the costs and improve/keep current quality of life because rent is a serious waste of money and by getting the rid of rent payments, saved money can outweigh the cons of increased food prices.

[wxa7115]

Russia does not have a positive future.  In the east, it borders on the insidious China, in the south - on the bloodthirsty Taliban. 

In the East, China is actually Russia's ally. Russia has already started a trade deal, and has just delivered China's order of oil and coal all paid in Yuan. I believe this will only be one of the actions that will start to weaken the U.S. Dollar's position as a world reserve currency.

Without a doubt, all our actions have some unintended consequences, even if we admit the sanctions against Russia were necessary this will make the alliance between Russia and China even stronger than it was in the past and it will weaken the system in which the dollar is the reserve currency of the world.

If at some point countries holding huge reserves of dollars think there is the slightest possibility the system is at risk then they will begin to spend their dollars on anything they can buy, producing massive inflation, especially at the United States.

[Sithara007]

Without a doubt, all our actions have some unintended consequences, even if we admit the sanctions against Russia were necessary this will make the alliance between Russia and China even stronger than it was in the past and it will weaken the system in which the dollar is the reserve currency of the world.

If at some point countries holding huge reserves of dollars think there is the slightest possibility the system is at risk then they will begin to spend their dollars on anything they can buy, producing massive inflation, especially at the United States.

At this point, China and Japan are the two countries who hold the largest amount of USD in their forex reserves. After witnessing what happened to Russia, I guess China will be moving towards replacing some of these reserves with other currencies, or with bullion metals such as gold or platinum. Russia already converted a part of their reserves to gold many years ago, and currently they are benefitting massively from it. Anyway, China has been planning the invasion of Taiwan for some time now, and they are closely monitoring what is happening in Ukraine.

[Freeesta]

Yes, prices will indeed go up. The main suppliers of wheat are Ukraine and Russia. In Ukraine, wheat will not grow this year. In Russia, there is a ban on the export of wheat from the country. Fertilizers for growing wheat are also produced in Russia. Prices will soar up and will not fall in the coming years. The future of European countries is not very cheerful

[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.

It's not only Germany affected by this massive increase, every country in Europe will have a similar issue. Not only that, richer countries tend to suffer the least in these massive inflationary spirals, which have been made even worse by the Russian invasion of Ukraine. That means that poorer or less developed countries are going to see much larger increases in their food costs. This seems like an inevitable outcome after the disruption of Covid, because money has been so cheap for such a long time, when supply chains struggled and people were coming out of the pandemic with extra savings, it was almost the "perfect storm" of bad outcomes. Unfortunately lots of political moves, like trying to prop up housing markets when they were already skyrocketing, end up in much worse outcomes later on.

[LastKiss]

Yes, prices will indeed go up. The main suppliers of wheat are Ukraine and Russia. In Ukraine, wheat will not grow this year. In Russia, there is a ban on the export of wheat from the country. Fertilizers for growing wheat are also produced in Russia. Prices will soar up and will not fall in the coming years. The future of European countries is not very cheerful

Well I guess it's not only European countries that get the effect from Russia and Ukraine, in my country a lot of things are increasing like oil, food, and even our tax lmao. I don't know if we're going to have another crisis but we just can be prepared by buying bitcoin since it can help us when our fiat is not worth it anymore.

[Sithara007]

Yes, prices will indeed go up. The main suppliers of wheat are Ukraine and Russia. In Ukraine, wheat will not grow this year. In Russia, there is a ban on the export of wheat from the country. Fertilizers for growing wheat are also produced in Russia. Prices will soar up and will not fall in the coming years. The future of European countries is not very cheerful

The impact of fertilizer shortage will be felt more. A large part of the global supply of fertilizer and raw materials used to produce it comes from Russia and Belarus. Both these nations are under embargoes and therefore a shortfall can be observed in the supply. And regarding the wheat crop, there is a 50% reduction in output from Ukraine, as the eastern and southern portions are unproductive this year. I am not sure whether there is any export ban in Russia, but I have seen news reports of Russian wheat being exported to Syria and Egypt.

[Tony116]

Not just Germany, rather many other countries in EU are facing the same issue. EU countries are one of the major importers of Russian oil. Due to the war, many countries have reduced the size of such import which led to fuel price increase. Along with fuel price increase, the price of commodities are going up because the transport cost is going up. Then it comes to inflation which is reducing the "purchasing power parity" of EURO which is again eating into the price of the commodities.

Rising fuel prices will increase production and transportation costs, so all commodities will be priced higher. No one else, it is the people who will bear the consequences.

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.

The US sanctions against Venezuela, have severely damaged their oil and gas industry and are unlikely to recover in the short term. Many experts think it will take several years for Venezuela to recover its oil industry and that will not help the current situation.

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 agree that this is America's war with Russia, the EU and Ukraine are just a pawn on the chessboard. The people of the EU and Ukraine are going through miserable days because of US sanctions, the US government does not care about the safety of the EU people, they just try to defy tricks to sink the Russian economy.

[boty]

Yes, prices will indeed go up. The main suppliers of wheat are Ukraine and Russia. In Ukraine, wheat will not grow this year. In Russia, there is a ban on the export of wheat from the country. Fertilizers for growing wheat are also produced in Russia. Prices will soar up and will not fall in the coming years. The future of European countries is not very cheerful

its war effect and spread around the world,alot innocent person get this negative effect moreover to citizen that in poverty. alot countries give economic sanction to Russia meanwhile actually they need oil and gas which is could no supply yet from other countries, it make production cost soar and everything rise too. if this condition continues and not stopped immediately, we will face economi crisis where purchasing power will decrease.

[ChiBitCTy]

This seems pretty crazy that food prices would rise this much. I’m sure that the supply chain is at least half of the issue there with those rising prices.

We are having a similar issues with food prices here in the United States. While inflation is up around eight or nine percent on average, some food prices are much higher. For example meats and seafood are up as much as 30% year over year, which is insane. We are also simply having a hard time keeping things in stock consistently, it’s driving me insane.

[be.open]

Yes, prices will indeed go up. The main suppliers of wheat are Ukraine and Russia. In Ukraine, wheat will not grow this year. In Russia, there is a ban on the export of wheat from the country. Fertilizers for growing wheat are also produced in Russia. Prices will soar up and will not fall in the coming years. The future of European countries is not very cheerful

The impact of fertilizer shortage will be felt more. A large part of the global supply of fertilizer and raw materials used to produce it comes from Russia and Belarus. Both these nations are under embargoes and therefore a shortfall can be observed in the supply. And regarding the wheat crop, there is a 50% reduction in output from Ukraine, as the eastern and southern portions are unproductive this year. I am not sure whether there is any export ban in Russia, but I have seen news reports of Russian wheat being exported to Syria and Egypt.

The ban on the export of food and fertilizer from Russia was introduced until August. But Syria and Egypt have nothing to worry about, the ban only applies to unfriendly countries, which do not include African countries. Russia will not allow a humanitarian crisis in Africa related to food shortages, because it knows how much many of the countries of the black continent depend on food supplies from Russia.

[Sithara007]

The ban on the export of food and fertilizer from Russia was introduced until August. But Syria and Egypt have nothing to worry about, the ban only applies to unfriendly countries, which do not include African countries. Russia will not allow a humanitarian crisis in Africa related to food shortages, because it knows how much many of the countries of the black continent depend on food supplies from Russia.

Russian farmers invested heavily in the grains sector ever since 2014 and these sort of export bans can be self-defeating for them. African nations alone can't make up for all the shortfall in demand coming from Europe. BTW, the rise in food prices is impacting everyone. And it will have political consequences. Here in India, the ruling party is now facing a lot of criticism for failing to control the rising inflation rate. And even in the US, elections are due in less than 7 months, and the GOP seems to be in a position to wrest back the control of the senate.

[be.open]

The ban on the export of food and fertilizer from Russia was introduced until August. But Syria and Egypt have nothing to worry about, the ban only applies to unfriendly countries, which do not include African countries. Russia will not allow a humanitarian crisis in Africa related to food shortages, because it knows how much many of the countries of the black continent depend on food supplies from Russia.

Russian farmers invested heavily in the grains sector ever since 2014 and these sort of export bans can be self-defeating for them. African nations alone can't make up for all the shortfall in demand coming from Europe. BTW, the rise in food prices is impacting everyone. And it will have political consequences. Here in India, the ruling party is now facing a lot of criticism for failing to control the rising inflation rate. And even in the US, elections are due in less than 7 months, and the GOP seems to be in a position to wrest back the control of the senate.

Small farmers are focused on the local domestic market, and large agricultural complexes are under state protection, so neither one nor the other will suffer from the ban on food exports. Plus, the ban is not complete, but only in order not to jeopardize the food security of Russia, therefore, through the decision of the government commission, exceptions are possible for friendly countries. After 2014, Russia made a huge breakthrough in this direction and instead of a food importer, it became a major exporter. The current ban was introduced until August, that is, before the harvest of a new crop, according to its results and depending on the development of the situation in Ukraine, it will be revised in August.

Judging by your previous messages, you yourself know everything about fertilizers, without fertilizers from Russia, the harvest will be lower. Plus, the sowing campaign has already been disrupted in Ukraine and there will be no harvest there this year, at all. These are large shortfalls, and someone will have to compensate for them in order to avoid a humanitarian crisis with hunger. I would not worry too much about the lack of demand, food is not a luxury, but a first necessity. People all over the world have a strange irrational habit of eating breakfast, lunch and dinner - and so every day. There are rumors that there are Yogis in India who eat sunlight, but I do not know them personally.

[Smartprofit]

The ban on the export of food and fertilizer from Russia was introduced until August. But Syria and Egypt have nothing to worry about, the ban only applies to unfriendly countries, which do not include African countries. Russia will not allow a humanitarian crisis in Africa related to food shortages, because it knows how much many of the countries of the black continent depend on food supplies from Russia.

Russian farmers invested heavily in the grains sector ever since 2014 and these sort of export bans can be self-defeating for them. African nations alone can't make up for all the shortfall in demand coming from Europe. BTW, the rise in food prices is impacting everyone. And it will have political consequences. Here in India, the ruling party is now facing a lot of criticism for failing to control the rising inflation rate. And even in the US, elections are due in less than 7 months, and the GOP seems to be in a position to wrest back the control of the senate.

As far as I know, Russia imports seeds for agriculture from other countries. 

In addition, agriculture uses imported harvesting equipment, as well as Russian equipment, but with the presence of foreign components. 

Some foodstuffs Russia does not produce in the required quantity to provide for its population - for example, beef (in India, as far as I know, cows are not eaten, and in Russia this is one of the main sources of meat). 

A similar situation with the production of milk - Russia imports the semen of bulls manufacturers.  Without semen imports, cows will produce less milk and the milk will have a low percentage of fat. 

In addition, Russia is now in a critical situation with the production of railway cars and trains.  Even with a good harvest, it is not a fact that the grain will be able to be delivered to the granary. 

In addition, bans have been introduced on the entry of Russian ships into many seaports.  This will lead to a significant increase in the cost of the transportation process. 

All this suggests that agricultural production in the Russian Federation will decline. 

The volume of food exports from Russia will also decrease. 

Selling prices for Russian agricultural products will rise.

[Sithara007]

Small farmers are focused on the local domestic market, and large agricultural complexes are under state protection, so neither one nor the other will suffer from the ban on food exports. Plus, the ban is not complete, but only in order not to jeopardize the food security of Russia, therefore, through the decision of the government commission, exceptions are possible for friendly countries. After 2014, Russia made a huge breakthrough in this direction and instead of a food importer, it became a major exporter. The current ban was introduced until August, that is, before the harvest of a new crop, according to its results and depending on the development of the situation in Ukraine, it will be revised in August.

Judging by your previous messages, you yourself know everything about fertilizers, without fertilizers from Russia, the harvest will be lower. Plus, the sowing campaign has already been disrupted in Ukraine and there will be no harvest there this year, at all. These are large shortfalls, and someone will have to compensate for them in order to avoid a humanitarian crisis with hunger. I would not worry too much about the lack of demand, food is not a luxury, but a first necessity. People all over the world have a strange irrational habit of eating breakfast, lunch and dinner - and so every day. There are rumors that there are Yogis in India who eat sunlight, but I do not know them personally.

Well.. I know that Uralkali and Belaruskali are some of the largest producers of potash fertilizers in the world. Now both these companies are sanctioned by the Western government (the latter one many months ago, after the post-election violence in Belarus). Other leading Potash manufacturers (especially Canada and China), may have some spare capacity, but they are in no position to completely replace the Russian/Belarussian production (~40% of the global supply). The impact of reduced grain production from Ukraine, and reduced productivity from elsewhere due to fertilizer shortage will be noticeable from next year onwards.

[be.open]

Small farmers are focused on the local domestic market, and large agricultural complexes are under state protection, so neither one nor the other will suffer from the ban on food exports. Plus, the ban is not complete, but only in order not to jeopardize the food security of Russia, therefore, through the decision of the government commission, exceptions are possible for friendly countries. After 2014, Russia made a huge breakthrough in this direction and instead of a food importer, it became a major exporter. The current ban was introduced until August, that is, before the harvest of a new crop, according to its results and depending on the development of the situation in Ukraine, it will be revised in August.

Judging by your previous messages, you yourself know everything about fertilizers, without fertilizers from Russia, the harvest will be lower. Plus, the sowing campaign has already been disrupted in Ukraine and there will be no harvest there this year, at all. These are large shortfalls, and someone will have to compensate for them in order to avoid a humanitarian crisis with hunger. I would not worry too much about the lack of demand, food is not a luxury, but a first necessity. People all over the world have a strange irrational habit of eating breakfast, lunch and dinner - and so every day. There are rumors that there are Yogis in India who eat sunlight, but I do not know them personally.

Well.. I know that Uralkali and Belaruskali are some of the largest producers of potash fertilizers in the world. Now both these companies are sanctioned by the Western government (the latter one many months ago, after the post-election violence in Belarus). Other leading Potash manufacturers (especially Canada and China), may have some spare capacity, but they are in no position to completely replace the Russian/Belarussian production (~40% of the global supply). The impact of reduced grain production from Ukraine, and reduced productivity from elsewhere due to fertilizer shortage will be noticeable from next year onwards.

You are right, this year will not be so noticeable yet, and next year there will be a strong reduction in yields - in the West from the lack of Russian and Belarusian fertilizers and from saving the gas from which these fertilizers are made. In Russia, due to the transition to domestic seed material, which is worse in quality. It looks like China knew something when it accumulated huge stocks of food all last year.

[wxa7115]

Without a doubt, all our actions have some unintended consequences, even if we admit the sanctions against Russia were necessary this will make the alliance between Russia and China even stronger than it was in the past and it will weaken the system in which the dollar is the reserve currency of the world.

If at some point countries holding huge reserves of dollars think there is the slightest possibility the system is at risk then they will begin to spend their dollars on anything they can buy, producing massive inflation, especially at the United States.

At this point, China and Japan are the two countries who hold the largest amount of USD in their forex reserves. After witnessing what happened to Russia, I guess China will be moving towards replacing some of these reserves with other currencies, or with bullion metals such as gold or platinum. Russia already converted a part of their reserves to gold many years ago, and currently they are benefitting massively from it. Anyway, China has been planning the invasion of Taiwan for some time now, and they are closely monitoring what is happening in Ukraine.

China is without a doubt watching what is happening at Ukraine with deep interest since it is not a secret they have their own designs at Taiwan, however if they decided to actually go through them the world will be in a complete chaos.

If the US and their allies tried to do something similar to what they are doing against Russia, China could implement sanctions that would also cripple them economically so I am not so sure that anyone would take the risk to sanction China under that scenario.

[Jating]

Without a doubt, all our actions have some unintended consequences, even if we admit the sanctions against Russia were necessary this will make the alliance between Russia and China even stronger than it was in the past and it will weaken the system in which the dollar is the reserve currency of the world.

If at some point countries holding huge reserves of dollars think there is the slightest possibility the system is at risk then they will begin to spend their dollars on anything they can buy, producing massive inflation, especially at the United States.

At this point, China and Japan are the two countries who hold the largest amount of USD in their forex reserves. After witnessing what happened to Russia, I guess China will be moving towards replacing some of these reserves with other currencies, or with bullion metals such as gold or platinum. Russia already converted a part of their reserves to gold many years ago, and currently they are benefitting massively from it. Anyway, China has been planning the invasion of Taiwan for some time now, and they are closely monitoring what is happening in Ukraine.

China is without a doubt watching what is happening at Ukraine with deep interest since it is not a secret they have their own designs at Taiwan, however if they decided to actually go through them the world will be in a complete chaos.

If the US and their allies tried to do something similar to what they are doing against Russia, China could implement sanctions that would also cripple them economically so I am not so sure that anyone would take the risk to sanction China under that scenario.

US has already imposed sanctions on China if I'm not mistaken during the time of Trump and we did feel the impact of it, before the pandemic.

And yes, the China-Russia relationship is deep, China not willing to fall into the pressures of the West to talk to Russia to stop the war, on the contrary, China thinks that it was NATO that drove Russia to attack Ukraine. Maybe China was displeased by the Russian's invasion, but it seems that they cover Russia's back because they have the same enemy, the US and it's allies.

[bustabitsboy]

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.

I don't think the situation will change soon. Difficult years are ahead and this increase in prices will affect everyone. Now people are forced to give up personal cars, but what will happen tomorrow? We can give up meat, alcohol, light, heat, but is that good? This is not a voluntary choice of a person. The government is forcing people to do it. All signs point to a major crisis ahead. I wonder how long the patience of ordinary people will last and why should they endure it?