As the 12th day of the war in Ukraine dawns, Russia faces harsh economic sanctions that isolate the country. A direct consequence of these sanctions is the rise in energy prices, but especially for many foodstuffs. An important change that will affect the wallets of the French.
While we expected gas and oil prices to rise, prices for many foodstuffs will rise sharply in the coming weeks. This is especially the case for grains such as wheat, of which Russia is the largest exporter (Ukraine ranks fifth), or corn.
While shortages are not to be feared in France, the expected rise in grain prices is due to the sharp rise in the cost of raw materials, as well as the blockage of Ukrainian cargo in the ports of Azov and the Black Sea, such as Odessa or Mariupol, which are currently the scene of Russian fighting and bombing.
Increase from 10 to 12 euros per month
“A family of four spends an average of 549 euros per month on food. Inflation alone adds 5.39 euros. There, due to the Ukrainian crisis, 10-12 euros more per month will be required,” said Christiane Lambert, president of the National Federation of Farmers’ Unions (FNSEA).
Thus, among the products that may experience the strongest increase, we find bakery products due to a spike in wheat prices, as well as pork and butter due to corn and sunflower production, which may be blocked in Ukraine for the next few months. The same problem is with the prices of milk, butter, cream or eggs, which can also rise sharply due to the already observed additional costs of feeding cows and chickens.
Back in February, the Food and Agriculture Organization of the United Nations (FAO) announced a record high for world food prices. The FAO Index rose 3.9% from January 2022 to 140.7 points, surpassing the February 2011 all-time high of 137.6 points.