Nowadays, trying to keep within the stipulated budget for food purchases is increasingly difficult. What started out as being slight increases in cents turned into significant increases. Why are the foodthe more and more expensive? How can I do my shopping without breaking the budget? In this article, we have gathered some tips that can guide you to the answers to these questions.
Why is food getting more and more expensive?
From trips to the supermarket, through restaurants or take-aways, the price of food products has been increasing noticeably. And not only. Have you noticed that some packages are smaller? Not only do you pay more, but the amount is less. These increases have been particularly noticeable since April 2021, although slight increases have been taking place for years. There are several factors related to food price inflation, such as: supplier problems, increased transport costs, animal-related illnesses, such as bird flu, among others. All these factors are related to the increase in prices that you see every time you go to the supermarket. Also read: Are you prepared for price increases?
Effects of the Covid-19 pandemic
You effects of the pandemic were notorious at all stages of the food chain, from production, supply, transport and sale. Although two years have passed since its inception, these effects still exist today.With the mandatory isolation and curfew, more people started to have their meals at home exclusively. So, suppliers that only work with restoration saw their activity compromised. On the other hand, supermarket chains were forced to meet the needs of millions of people unexpectedly and to replenish stocks more regularly. However, suppliers were not prepared for this demand, which also made this activity difficult. With travel restrictions, many companies that depended on migrant workers saw their activity compromised, as well as the increase in prophylactic isolations and casualties by Covid led to many companies staying on minimal services. All this influences the final price What do you see on your bill when you go to the supermarket. Also read: Did you use savings during the pandemic? 7 strategies to recover
Problems at the food supplier level
Currently, the food supply is not meeting demand due to several factors. Let’s talk, for example, about agriculture. Currently, many farmers find it difficult to obtain seeds, fertilizers and other materials essential for food production.s. On the other hand, there are other external factors such as lack of water and the decrease in available labor, which create obstacles to production. However, despite food production being slower, the population’s needs remain the same. So, when demand is greater than supply, prices rise.Also read: Ready for the price hike? 22 tips to increase income
Increase in transport costs
If food production is hampered, your transsport is not far behind. The transport of goods has undergone large increases, namely by the increase in fuel prices and the decrease in workers in the truck driving sector. However, not everything that is consumed in Portugal is produced by us. There are several products that are imported, which also does not come cheap, as international transport costs have also increased. Likewise, more recent events have led to the change of international sourcing, which means that we have to change our suppliers. This change creates an increase in the prices of imported products, both at the supplier price level and at the retail price level. Also read: Why should I take inflation into account in my emergency fund?
O price of food products also depends on the global marketand this is often affected by external factors not controllable by humans. Drought, fires, storms and other weather events can ruin crops and lead to higher prices, which can last for years. Likewise, several countries have reduced trade to prevent the spread of Covid-19 and to safeguard their own supplies. There is also the effect of conflict between Russia and Ukraine that is affecting the global economy, including the food industry. Approximately one third of the world’s wheat and barley comes from Russia and Ukraine, with Ukraine being a major producer of sunflower oil and corn. Obviously, under current conditions, Ukraine is unable to export any kind of product and sanctions against Russia are increasing day by day. For some time it was possible to depend on existing supplies before the conflict started. However, in recent months we have seen the cost of products such as bread, cereals and oil progressively increase.Also read: What impact does rising inflation have on our daily lives?
Another factor related to the increase in prices, in particular of chicken meat and eggs, is the bird flu outbreaks. Currently, the America and Europe are being affected by outbreaks that have already affected about 38 million birds. At the moment, given this situation, breeders have been forced to raise prices, which means that you will also find them higher in supermarkets. Also read: A guide to saving at the supermarket: better shopping, more savings
Rising energy costs
O fuel prices also experienced heavy increases, in particular because of the sanctions imposed on Russia. With most countries ending the import of Russian fuels and looking for other alternatives, the price at gas stations has increased as has not been seen for many years. On the other hand, these increases are exacerbating already high food pricesboth in terms of production and transport, costs that the pandemic itself had already “helped” to increase. Also read: What to expect in the coming months?
Which foods are seeing the biggest increases?
According to a study by Deco based on a basket of 63 essential products, it was found that the biggest increases since the beginning of the conflict between Russia and Ukraine are in fresh hake, cooking oil and chicken meat. Likewise, there were also significant increases in turkey, pork, eggs, rice and flour for cakes. Thus, according to the basket established for this study, it was possible to conclude that at least ten of these products had increases above 17%. Read also: Increase in natural gas prices in July and October
How can I save from food inflation?
There are always some tips that can help ensure you save, even with price increases.Do your research with regard to promotions and opportunities discount;Plan your meals in order to buy only what you need;Before you go shopping, check what’s in the pantry that you can still use; Prepare larger quantities and freeze to eat in the future;Buy white marks instead of originals; toggle the locations where you do your shopping; Try to consume seasonal foods.Also read: Price and value: What really matters when shopping