Food Prices Are Soaring Faster Than Inflation and Incomes

Sithara007

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Quote from: AndySt on April 04, 2021, 05:55:21 PM

Also, do not forget about the various pandemic restrictions and lockdowns that led to a decrease in production volumes or even a complete cessation of production, which led to a decrease in the production of agricultural machinery and equipment. I would also like to remind you about the closed borders for migrant workers, which are necessary for seasonal work. All this also contributes to the growth of food prices.

Restrictions on foreign agricultural workers may be one of the reasons for low productivity. Even here in India, the lockdowns had an impact as it slowed down the movement of agricultural workers from states that provide them (such as Uttar Pradesh and Bihar) to those states which employ them (such as Haryana, Punjab and Tamil Nadu). And agriculture needs 24x7 maintenance. Disruptions to this may spoil the produce.

Kong Hey Pakboy

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Quote from: Johnyz on March 26, 2021, 08:31:17 AM

Quote from: Kong Hey Pakboy on March 26, 2021, 05:38:26 AM

Japan experiences deflation which is also bad because that means that there is no growth in the economy, being stagnant in between inflation and deflation is the ideal thing for a country to achieve, I don't know much about the income and food prices there but I have read an article that they are experiencing deflation.

Too much is not good at all and seriously, we can't stop the inflation even the deflation, the government has to do something about this one. The goal of every government is to make the inflation move slowly, because there's no way to stop it from growing but we can slow it considering all the economic variable.

The Covid19 is just one of the reason why the inflation is increasing, this is why we have to help ourselves as well and do some good investments that can double your money, don't just put it on a savings account with banks spend it.

I have to disagree with you about deflation not being unstoppabble because as far as I know, Japan is the only one experiencing deflation and if the economy continues to grow or inflate at a steady rate then deflation can entirely be prevented. You are right that the pandemic is one of the many causes of inflation but if the government knows what to do during those times then they could've prevented a bad increase in inflation.

AmoreJaz

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Quote from: CarnagexD on April 04, 2021, 06:02:20 PM

The world depletes its resources, population rises even more and this causes food and resource shortage in some parts of the world, couple that with incompetent governance, and what you have is the recipe for a societal cesspool. Work hours are fairly justified, but not well-compensated because of inflation. If this drags out, we'll be at war again for resources, much like in medieval times, stone ages even.

thats why if you have the resources like spare land or area to tend with, make sure you are optimising its use. we cant rely from the govt these days. in order to survive, you need to look out for yourself or your family. find options how to generate alternative income. because your job today, may be gone tomorrow.
better be prepared than be miserable with your life, because you didnt prepare for whats to come. complaining with the situation will not help you survive. you need to find ways on your own how to address esp your basic needs

CarnagexD

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The world depletes its resources, population rises even more and this causes food and resource shortage in some parts of the world, couple that with incompetent governance, and what you have is the recipe for a societal cesspool. Work hours are fairly justified, but not well-compensated because of inflation. If this drags out, we'll be at war again for resources, much like in medieval times, stone ages even.

AndySt

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Quote from: tyz on April 04, 2021, 08:20:21 AM

Quote from: bryant.coleman on April 04, 2021, 08:11:18 AM

I believe that all this is due to fiat inflation.

It is. Or by the climate crisis, which is already leading to severe crop losses in some regions of the world and thus to higher prices. But if you take away the last reason, only one reason remains: excessive money printing. Because normally the prices should fall now, because more "cheap" labor is available and therefore the prices should fall, similar to the financial crisis.

Also, do not forget about the various pandemic restrictions and lockdowns that led to a decrease in production volumes or even a complete cessation of production, which led to a decrease in the production of agricultural machinery and equipment. I would also like to remind you about the closed borders for migrant workers, which are necessary for seasonal work. All this also contributes to the growth of food prices.

tyz

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Quote from: bryant.coleman on April 04, 2021, 08:11:18 AM

I believe that all this is due to fiat inflation.

It is. Or by the climate crisis, which is already leading to severe crop losses in some regions of the world and thus to higher prices. But if you take away the last reason, only one reason remains: excessive money printing. Because normally the prices should fall now, because more "cheap" labor is available and therefore the prices should fall, similar to the financial crisis.

bryant.coleman

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Quote from: kolbalish on April 04, 2021, 06:58:27 AM

I don't understand what to explain about this consequence. The dilemma is so dire that it is problematic to imagine what will happen to the people. I assumed that the allotment for Corona is getting less and that is why the price is going up so fast. On the contrary, the income is not improving. The circumstance is becoming very difficult day by day for the middle class, lower-middle-class, and lower class. The affidavit is correct because even in the stock market, it appears that prices do not fluctuate as fast as in the case of food prices.

I believe that all this is due to fiat inflation. Governments around the world are printing banknotes like crazy, giving the excuse of COVID 19 stimulus. This in turn has caused a decrease in the purchasing power of fiat. If you look around, you can see that most of the commodities have become costly as of now. Crude oil is the best example, as the prices have risen by 60% during the last 12 months. Overall, inflation is going up in almost all the countries.

kolbalish

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I don't understand what to explain about this consequence. The dilemma is so dire that it is problematic to imagine what will happen to the people. I assumed that the allotment for Corona is getting less and that is why the price is going up so fast. On the contrary, the income is not improving. The circumstance is becoming very difficult day by day for the middle class, lower-middle-class, and lower class. The affidavit is correct because even in the stock market, it appears that prices do not fluctuate as fast as in the case of food prices.

xSkylarx

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Quote from: Hydrogen on March 22, 2021, 04:19:54 PM

One possible scenario for this is creating educational lectures on how to grow and produce food with a quiz at the end. Rewarding participants with crypto coins for answering questions correctly. A big part of humanitarian efforts in 3rd world nations is education on how to grow crops. Farming competitions could be held and rewarded via token. Its the internet era ideas like these are a dime a dozen.

This is a great idea to encourage more people to learn and produce raw food materials by themselves. Since farming simulation game on the crypto world is very popular now like Town Star. It sbould not be all about answering questions correctly but instead have a farming tournament where a number of people are tasked to produce a particular crop. Tey will be ranked based on the quality of crop they will prodice, only top 3 can win that token. All of their harvest can be a big help in increasing the supply of that crop thus decreasing the price.

Sithara007

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Quote from: bitgolden on March 30, 2021, 10:43:31 AM

Quote from: Vishnu.Reang on March 30, 2021, 04:45:59 AM

At first I thought that it may have an impact on food and commodity prices. But the blockade was removed today and the ship which was blocking the canal was successfully refloated. More than 300 ships were on queue as a result of this blockade, and the cargo may have included food items. Fortunately the issue was resolved in quick time, before it could cause huge amount of damage to the global economy.

I think we have to consider the fact that some of those items, if there was food of course, could go bad if they wait for too long. This is why there needs to be some sort of lessons about this. I get that it is already a very difficult situation and a canal is not something easy to do, but maybe bigger, or maybe a double could solve this in the future. I am not saying it should be done or even could be done because I do not know these type of things to be honest, but I think this is obviously not working if just one problem caused so much.

However people need to realize even if 300 ships were waiting and some food in them go bad, that doesn't mean that we should have a worldwide price increase considering that wasn't the only food, or even majority of the food, maybe except few nations. However food prices increasing everywhere, it is getting harder. One main problem is that new generations are not becoming farmers, they prefer other jobs, and that is a big reason to not have cheap food anymore.

The economic damage from the blockage could be as high as $100 billion (as per the BBC). Almost one-eighth of the global trade passes through the Suez canal, and it contributes 2% to the GDP of Egypt. Taking the alternate route (around the Cape of Good Hope) adds some 9 to 10 days to the journey time of cargo ships. All that said, I don't think that food that was transporting inside the ships might have gone bad. Most of the food items were wheat, barley.etc, which are having good shelf-life.

Silberman

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Quote from: zanezane on March 23, 2021, 02:04:51 AM

Inflation is coupled with food prices, if food prices are going up faster than inflation then that means that there is an overpricing that is going on. Based on the definition in Google, inflation is a general rise in the price level in an economy over a period of time. The real problem is that the inflation rate is going up more than the recommended annual percentage which is around 1 to 2 percent which if achieved meant that the economy is growing.

Not really, inflation does not happen all across the board in the same proportion, inflation has a tendency to affect the things that people need the most and one thing that no person can do is to live without food, so when inflation begins to go up very rapidly one of the first things that go even faster than that is food, not only because people keep buying it but also because people begin to panic and buy more of it whether because they want to avoid inflation or because they think things are going to get even worse, and we see this happening as well in other key markets like housing.

samcrypto

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Quote from: Kakmakr on March 30, 2021, 03:46:33 AM

A lot of people are not sitting back and waiting for this to happen. You see a lot of urban gardens on Roof tops these days and people cultivating food on subsistence farms in their back gardens. (Chickens for eggs and some tomatoes and greens) Wink

So whatever you produce for yourself, you do not have to buy in the shops. We know governments are not adding the food to the Inflation basket, that are rising the most... because it makes them look bad ..if the inflation is too high. (Most government employees salary increases and workers salary increases are based on the inflation too...so they manipulate it..to keep it low) Angry

Because of limited supply and a huge demand, they are forced to the back-up plan which is to plant their own crops and harvest it as needed. We know how the population increases over time and with the current pandemic situation, people tend to consume more. Inflation grows as well along with those crops, we are living on a expensive time where money is very important nowadays, good thing we have Cryptomarket to earn some extra money to spend for our needs.

Karartma1

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Quote from: Vishnu.Reang on March 30, 2021, 04:45:59 AM

Quote from: Karartma1 on March 29, 2021, 02:21:33 PM

What happened in the Suez Canal will also become one of those triggers that could start the avalanche of inflation on prices which were kept under control for too long now. Since what happened will have big consequences expect prices of goods to be at least 10% higher than what they used to be. And the worst is yet to come.

At first I thought that it may have an impact on food and commodity prices. But the blockade was removed today and the ship which was blocking the canal was successfully refloated. More than 300 ships were on queue as a result of this blockade, and the cargo may have included food items. Fortunately the issue was resolved in quick time, before it could cause huge amount of damage to the global economy.

There are in any case many billion dollars floating around that have been burned these days due to the blockage and, for this reason, I expect to see an increase of prices, even if of a slight nature.
I also expect insurance companies to raise the premiums because of this and trust me that those price raise will be then offloaded onto the final customers (us).

DrBeer

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This problem should be divided into at least several "vectors".
The first. If you look at the history of mankind, then any large-scale cataclysms carry risks for the population. The pandemic carries the risk of a decrease in production and, accordingly, a decrease in the availability of goods. In our country (Ukraine), as in many countries of the ex-USSR, there was a habit, in the event of some kind of incomprehensible situation, to massively buy food and "essential" means. That has always led to an increase in demand and, accordingly, prices. I have seen examples of Western countries suffering from such actions.
Second. Real drop in production. From staff cuts to problems with financing the agricultural sector. The agricultural sector often attracts external loans, bank loans, etc. In times of global crises, money rises in price, the same loans receive additional risks "in the load".
Third. Just a conspiracy of manufacturers, and most likely retail chains - why not make money on what people will buy BEFORE the LAST day of their lives - food, in a situation where there is a question of survival and the formation of a food "pillow".
Other options are also possible, I wrote about the first thing that came to my mind

aysg76

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Due to pandemic there is shortage of supplies everywhere which in turn is affecting production and this is leading to increase in food prices because they all are connected to each other.Inflation is contributing more towards this situation and native currency geeting weak against US dollar will increase the import charges which will also surge the prices.So wee need to find some optimal solutions for these problems because they will not get cheap any time soon and tend to rise in future so find a way to get your own food supplements stack or some good source of income to afford them easily.

bitgolden

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Quote from: Vishnu.Reang on March 30, 2021, 04:45:59 AM

At first I thought that it may have an impact on food and commodity prices. But the blockade was removed today and the ship which was blocking the canal was successfully refloated. More than 300 ships were on queue as a result of this blockade, and the cargo may have included food items. Fortunately the issue was resolved in quick time, before it could cause huge amount of damage to the global economy.

I think we have to consider the fact that some of those items, if there was food of course, could go bad if they wait for too long. This is why there needs to be some sort of lessons about this. I get that it is already a very difficult situation and a canal is not something easy to do, but maybe bigger, or maybe a double could solve this in the future. I am not saying it should be done or even could be done because I do not know these type of things to be honest, but I think this is obviously not working if just one problem caused so much.

However people need to realize even if 300 ships were waiting and some food in them go bad, that doesn't mean that we should have a worldwide price increase considering that wasn't the only food, or even majority of the food, maybe except few nations. However food prices increasing everywhere, it is getting harder. One main problem is that new generations are not becoming farmers, they prefer other jobs, and that is a big reason to not have cheap food anymore.

Vishnu.Reang

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Quote from: Karartma1 on March 29, 2021, 02:21:33 PM

What happened in the Suez Canal will also become one of those triggers that could start the avalanche of inflation on prices which were kept under control for too long now. Since what happened will have big consequences expect prices of goods to be at least 10% higher than what they used to be. And the worst is yet to come.

At first I thought that it may have an impact on food and commodity prices. But the blockade was removed today and the ship which was blocking the canal was successfully refloated. More than 300 ships were on queue as a result of this blockade, and the cargo may have included food items. Fortunately the issue was resolved in quick time, before it could cause huge amount of damage to the global economy.

Kakmakr

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A lot of people are not sitting back and waiting for this to happen. You see a lot of urban gardens on Roof tops these days and people cultivating food on subsistence farms in their back gardens. (Chickens for eggs and some tomatoes and greens) Wink

So whatever you produce for yourself, you do not have to buy in the shops. We know governments are not adding the food to the Inflation basket, that are rising the most... because it makes them look bad ..if the inflation is too high. (Most government employees salary increases and workers salary increases are based on the inflation too...so they manipulate it..to keep it low) Angry

sapnu

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Quote from: Oceat on March 22, 2021, 07:20:56 PM

I think this covid-19 is a big joke to us because it makes us suffer more from time to time and over a year there's a little progress although they've said there's an effective vaccine already but I still have my doubts about it. We should do something about of the food crisis and one of the best suggestions is to make a garden and plant more vegetables in your backyard or somewhere else around your house.

I think this food prices issue will still continue to grow more and more and it might be too late if we only take action when we finally realized that the cost price is doubled or tripled. If you are on a third world country, you should learn how to survive without the help of the government.

Having a stable job is not enough nowadays because of the minimum wage rate, we should learn to improvise and adapt to the situation in order to survive even without the help of the others.

Also, we can count in the abuse of the natural resources in the world on why we are getting near to the critical point of food crisis. There are plenty of mountains being mined more than it should be and trees are being cut without even replacing it. The virus somehow helped for a while for the mother nature to regenerate and heal but on the other hand, it is causing the economy of each country to go down. The salary each poor family is recieving cannot even sustain their needs for a week as the prices of different essential need continue to increase. Maybe putting up your own garden could be a good idea but not everyone in the world has a backyard where they could plant their crops. In the near future, some country will surely experience famine, and I think that is innevitable.

Karartma1

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What happened in the Suez Canal will also become one of those triggers that could start the avalanche of inflation on prices which were kept under control for too long now. Since what happened will have big consequences expect prices of goods to be at least 10% higher than what they used to be. And the worst is yet to come.

Topic: Food Prices Are Soaring Faster Than Inflation and Incomes (Read 438 times)