The growth rate of food prices will already exceed incomes this year

By: Trademagazin Date: 2022. 07. 21. 10:50

We will start to feel the effects of the war in food prices in the quarter of 2022, and the effects of the Covid crisis are currently still visible. Food has never been such a burden for households as it is now – said Csaba Héjja at the press event presenting the latest Takarék AgrárTrend Index. The senior analyst of Takarékbank’s Agrarian Business, Agrarian Analysis, Product and Process Support Center expects an average increase in food prices this year of 28 percent. According to his opinion, the growth rate of income will already exceed his income this year.

Csaba Héjja, senior analyst of Takarékbank’s Agrarian Business, Agrarian Analysis, Product and Process Support Center, started his presentation by presenting the macroeconomic situation. Based on various indicators, the world economy has found itself in a situation not seen in the last 40 years. The financial crisis of 2008 and the Covid crisis of 2020 were different both in their nature and in their management. And the first-round effects of the Russian-Ukrainian war further worsen the outlook. Despite all this, households in Eastern and Western Europe spent more on food, which was also presented above in the consumption structure. Has food ever been so expensive? – asked the analyst, explaining that from the 1960s to 2000, the performance of agriculture increased in such a way that the real price of food decreased. A trend reversal occurred in the 2000s, and then after the 2008 crisis, there were years of peace until 2021.