Experts Project Food Inflation To Surge Up To 10%

.

Experts Project Food Inflation To Surge Up To 10%

The news of increasing food prices can be another blow to households. As forecasted by experts, the food inflation can climb up to 10% before Christmas on account of the dampened harvest due to dry weather resulting in reduction in food supplies.

There are fears associated with the food inflation, which would trigger the overall inflation igniting the recessionary conditions.

As reported by BOCM Pauls, Britain's biggest animal feed supplier, there has been an increase of 20% in the prices of feed raw material. Also, the price of wheat, used to feed animals, has surged to 30%.

An upsurge is being experienced in feed prices, as supply of fodder is getting slumped and the harvest is being expected to remain weak, which would make the situation worse.

As a result, the food products relating to milk, cheese, chicken, beef and pork have been expected to gain the price momentum.

The impact of rising food prices will be shifted to the consumers, though not completely. As the profit margins decrease, prices are likely to be hiked.

Exports can be the alternative to compensate with the prevailing condition, but even one such provider, Russia, is facing harsh conditions due to the occurrence of a drought that affected one-third of Russia's crop. Thus, the region is likely to cut its exports by half.


Latest News

Third-Quarter Sales Better -Than- Expected for LinkedIn, Thanks to New Businesse
“Overweight” Rating for Facebook from JPMorgan Chase & Co
Fall in Oil prices Leave the Small-cap Shale Companies in Trouble
Beginning of 2015, Starbucks will Start its Delivery Service in Selected Markets
Herb Strather, Detroit blight Buyer Makes a Wednesday Deadline
Baidu with its Growing Mobile Presence, Hit 27 Percent Profit Increase
Third Quarter Profits for Samsung Electronics Drop Sharply
Federal Reserve Ends Bond Buying Programme, Keeps Interest Rates Low
Reduced Growth in Major Overseas Economies Affect U.S. Durable Goods Order
Lowe’s to Introduce Robots in Store for Customer Service
Facebook Shares Fall as the Company Portrays Increased in Expenses in 2015
USPS Audit Questions the Consistency of Surveillance Conducted on Mail