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Inflation hitting food prices globally, as shortages begin

 

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(NewsNation) — Inflation, which is at a 40-year high, is working its way into the wallets of Americans in every which way it can.

Gas prices are at all-time highs. The stock market has been tumbling, inching closer to being considered a hibernating “bear market.” And the items you love at the grocery store are getting marked up.

Food prices rose 1.5% from March to April alone.

Food prices in particular have been rising and hitting Americans close to home. And the problem may only get worse as farmers are warning of a coming shortage of staple crops including corn, wheat and soybeans.

Breakfast items such as milk, bacon and eggs have seen significant price rises over the past year. Bacon is up over $1 per pound.

The United States Department of Agriculture estimated food prices at the grocery store will rise 5-6% across the board in 2022.

The USDA gave the following price increase predictions for 2022:

  • Beef, poultry, fish – 5.5-6.5%
  • Eggs – 6-7%
  • Dairy – 6-7%
  • Fats and oils – 8-9%
  • Fresh fruit – 6-7%
  • Fresh vegetables – 4-5%
  • Sweets – 5.5-6.5%
  • Bakery goods and cereals – 6-7%

The price of citrus fruits has risen 19.5%, leading to a case of limes costing more than a bottle of top shelf tequila for some bars, according to The New York Times. Even New York’s famous $1 slice of pizza has taken a hit from inflation.

Americans are still spending plenty on groceries, choosing instead to cutback on discretionary spending.

Major retailers Target and Walmart both reported massive profit losses in 2022 compared to 2021, but both said grocery sales were still going strong despite losses and inflation.

Even professional athletes are starting to take notice of rising food prices. Decorated professional golfer Justin Thomas said he was “blown away” with the high food prices set for this week’s PGA Championship, where a beer will cost $18 and a salad is $16.

The war in Ukraine has also had an impact on global food prices worldwide. In Europe, wheat prices are up 74% and palm oil prices have risen 24%.

The United States went so far as to accuse Russia of weaponizing food in its invasion of Ukraine, saying Russia was holding grain “hostage” from millions of people around the globe.

India has banned the export of wheat out of the country, citing the threat of food insecurity.

The director of the United Nations World Food Program on Thursday warned of a coming global food shortage, saying 300 million people could face a “crisis” level food shortage.

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