A lot of families have already been feeling the pinch when it comes to food prices since the pandemic started.
“Usually like milk and beef and lots of meats. A lot of times they’re in short supply too,” shopper Sue Anderson said.
[ Russia attacks Ukraine: More than 400 civilians killed in conflict, UN says (live updates) ]
When the U.S. Bureau of Labor Statistics looked at the major food categories, almost all of them went up from December to January:
- Cereals and bakery products: 1.8%
- Dairy: 1.1%
- Fruits and vegetables: 0.9%
- Meat, poultry, fish, and eggs: 0.3%
The only group that didn’t climb was nonalcoholic beverages.
The group Food Dive, which reports on trends shaping the food industry, says wheat, soybeans, oats, and corn have been pricier because of extreme weather, labor shortages, and supply chain issues over the past year.
Food Dive says that when Russia invaded Ukraine, key food prices hit their highest in almost a decade.
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According to Reuters and multiple other sources, Russia and Ukraine produce 19% of the world’s corn, 29% of the world’s wheat, and 80% of the world’s sunflower oil.
Rabobank -- a European bank that focuses on agriculture -- says that if war goes on for a while, the price of wheat would go up by 30% and corn would increase by 20%. It’s not clear what would happen to sunflower oil prices.
Throw in economic sanctions on Russia and if fighting stretches into summer, the price of wheat would double and corn would go up 30%. Again, there is no word on sunflower oil.
Multiple sources, including the Wall Street Journal, say Russia produces a lot of nitrogen. American farmers need that to fertilize crops. So that can impact supply even more.
“You’re going to see a lot of differences in the grocery stores,” Winthrop University economics professor Louis Pantuosco said.
He says supply and demand, inflation, gas prices, and even consumer confidence all play a part in how much we pay for food.
“It’s just causing a lot of disruption and uncertainty and … the markets hate uncertainty, people hate uncertainty, and people get a little bit spooked by the prices going up,” he said.
(WATCH BELOW: Here’s how the the Russian invasion of Ukraine could impact the gas pump)
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