Food prices to rise by 10%-12% in Romania over next several months - forecast
The food prices in Romania will increase by 10%-12% in the coming months, as a result of higher energy prices and higher import prices, according to estimates of the president of the National Federation of Trade Unions in the Food Industry Sindalimenta, Dragoş Frumosu, Economica.net reported. Higher energy prices will generate a 6-7pp increase alone.
As of July 2021, the food prices were up 2.3% year-on-year, less than half the headline consumer price inflation (5% YoY). Nevertheless, the average prices of the energy inputs soared by over 30% as of July (Frumosu speaks of a 100% rise in energy prices faced by the food processors), generating significant inflationary pressures.
Separately, the global food price index compiled by the UN's Food and Agriculture Organisation (FAO) surged by nearly 30% YoY as of August.
Romania imports some 25% of the milk it needs, 70% of the pork and significant beef - Sindalimenta head Dragos Frumosu explained, implying that higher global prices will quickly be imported as well.
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