- At GlobeLiveMedia we explain why US food prices are likely to rise much higher in the near future. Among the factors that would make this happen are severe weather conditions in the country’s agricultural fields.
The most recent report on inflation published by the Bureau of Labor Statistics (BLS, for its acronym in English) showed an alarming trend: that of the unstoppable increase in food prices in the United States. And now, food prices are likely to go much higher soon, due to severe weather conditions that threaten the US agriculture sector.
Charlie Dougherty, an economist at the US bank Wells Fargo, assured for the Fox Business news portal that the severe drought in the West and Midwest of the United States has reduced agricultural production.
Likewise, Dougherty pointed out that the prolonged heat wave, the lack of rain or precipitation and the imbalance of cold temperatures in the country have not only reduced the national harvest fields, but have also worsened the quality of American grass.
He further added that fire risks have risen steadily over time, while water supplies appear to be shrinking. Among other episodes worth noting is the recent outbreak of avian flu, earlier this year, which severely affected the supply of chickens and eggs, according to a report by The New York Times.
All these climatic and virological conditions would cause food prices to rise soon.
On the other hand, farm, ranch and land work implements have also become difficult to find due to supply chain problems. Dougherty said the manufacturing sector is “battling with shortages of key materials, while food processors have been hit hard by worker shortages.”
External factors that will cause food prices in the US to rise soon
In addition to the obvious national problem, it is likely that food prices in the US will rise soon due to the intensification of the Russian invasion of Ukraine.
Particularly because the region represents a global source of wheat and soybeans, increased hostilities from Russia are likely to increase prices of these products around the world, making a large number of food products more expensive in the world. USA.
Likewise, fertilizers from Russia and Belarus represent more than 20% of the export of these products globally, according to a Wells Fargo report called “The State of Agriculture”, published last month. Making the international purchase of these products difficult could have a clear impact on harvests and, therefore, on food prices in the world.
According to data from the Consumer Price report issued by the Bureau of Labor Statistics, the increase in the prices of homemade foods rose 13.5% during the last 12 months, which represents the largest increase in a period of 12 months consecutive years of these items since 1979.
Samuel Edwards is the name you must have heard many times while reading reports related to Finance, that’s what he is good at. From Major Investments to Stock Market Updates, he got ’em all. Be ready to blow your mind by the mind-blowing reports of Finance World from Samuel Edwards.