Skip to content
The Domestikated Life
  • Property & Casualty
  • Business News
  • Capital Market
  • Stock Market
  • Sky Business
  • About Us
    • Advertise Here
    • Contact Us
    • Privacy Policy
    • Sitemap

Charting Global Economy: Soaring Food Costs Risk Destabilization

  • Home
  • Charting Global Economy: Soaring Food Costs Risk Destabilization
By: Mary Posted on April 9, 2022

Table of Contents

  • Breadcrumb Trail Links
  • Article content
  • Advertisement 2
  • Article content
  • Advertisement 3
  • Article content
  • Advertisement 4
  • Article content
  • Advertisement 5
  • Article content
  • Advertisement 6
  • Article content
  • Advertisement 7
  • Article content
  • Share this article in your social network
  • Advertisement
  • Financial Post Top Stories
    • Thanks for signing up!
    • Comments

Breadcrumb Trail Links

  1. PMN Business

Author of the article:

Bloomberg News

Bloomberg News

Related Posts:

  • Sixty feared dead in Ukraine school bombed by Russia, governor says

Vince Golle and Molly Smith

Publishing date:

Apr 09, 2022  •  35 minutes ago  •  4 minute read  •  Join the conversation

Article content

(Bloomberg) — Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Record-high food inflation is tightening its grip on the global economy, most critically in developing nations where financial distress is contributing to increased political instability.

The costs of staples such as wheat and cooking oils continue to accelerate as Russia’s war in Ukraine, a key exporter of commodities, upends trade and fuels concern about shortages. High energy prices are also adding to inflationary pressures. 

Advertisement 2

This advertisement has not loaded yet, but your article continues below.

Article content

In Sri Lanka, consumer prices accelerated to about 19% — the highest in Asia — and could keep climbing to 25%, according to the central bank, which just increased interest rates by an unprecedented seven percentage points. The soaring costs have sparked street protests calling for the president’s ouster.

An emergency meeting by Pakistan’s central bankers resulted in the biggest rate hike since 1996 as more political chaos and higher oil prices risk developing into a full-blown economic crisis. 

Here are some of the charts that appeared on Bloomberg this week on the latest developments in the global economy:

World

Global food prices are surging at the fastest pace ever as Russia’s war in Ukraine chokes crop supplies, piling more inflationary pain on consumers and worsening a global hunger crisis. The war has wreaked havoc on supply chains in the crucial Black Sea breadbasket region, upending global trade flows and fueling panic about shortages of key staples such as wheat and cooking oils.

Advertisement 3

This advertisement has not loaded yet, but your article continues below.

Article content

Across Ukraine’s farm belt, silos are bursting with 15 million tons of corn from the autumn harvest, most of which should have been hitting world markets. The stockpiles — about half the corn Ukraine had been expected to export for the season — have become increasingly difficult to get to buyers, providing a glimpse into the war has wrought in the approximately $120 billion global grains trade.

Emerging Markets

Pakistan’s central bank raised interest rates by 250 basis points following an emergency meeting, as escalating political chaos at home and higher global oil prices threaten to spill over into a full-blown economic crisis. The key rate now stands at 12.25%. Central banks in Peru, Uruguay, Romania, Poland and Serbia also tightened policy.

Advertisement 4

This advertisement has not loaded yet, but your article continues below.

Article content

Sri Lanka’s central bank also raised borrowing costs — by an unprecedented 700 basis points amid economic and political turmoil that has sparked street protests and left President Gotabaya Rajapaksa with a minority in parliament.

Turkish inflation soared to a fresh two-decade high in March, leaving the lira increasingly vulnerable by depriving the currency of a buffer against market selloffs. Turkey’s ultra-loose monetary policy is out of sync with the rising hawkishness of many of the world’s central banks at a time its economy is bracing for commodity shocks unleashed by Russia’s invasion of Ukraine.

Europe

European natural gas prices gained after five days of declines on concerns that Russian flows through key transit country Ukraine may be disrupted. Russian military operations are putting the stability of flows to Europe at risk, Gas Transmission System Operator of Ukraine said.

Advertisement 5

This advertisement has not loaded yet, but your article continues below.

Article content

German factory orders fell for the first time in four months in the runup to Russia’s invasion of Ukraine, underscoring concerns over slower growth in Europe’s largest economy. Expectations for Germany’s economic recovery have been slashed after the war in Ukraine sent energy prices higher.

Chancellor Olaf Scholz reiterated his opposition to reversing Germany’s exit from nuclear power to help cut reliance on Russian energy, saying the technical challenges would be too great. Germany is rushing to end its heavy dependence on Russian fossil fuels but the process has been complicated by the decision by former Chancellor Angela Merkel’s previous government to shut down the country’s nuclear power plants. 

Advertisement 6

This advertisement has not loaded yet, but your article continues below.

Article content

U.S.

The U.S. trade deficit held close to a record in February as the merchandise shortfall shrank and the surplus in services declined, partly reflecting the impact of broadcast rights for the Olympics. Services imports increased to a record $51.6 billion, with about half of the rise coming from the biggest monthly increase in charges for use of intellectual property since 2016.

Spot rates for shipping goods in containers to the U.S. from Asia fell for a sixth straight week, the longest skid of the pandemic, as Covid-19 lockdowns disrupt trucking, warehouses and port operations in China. The market for ocean freight is softening partly because that’s what it typically does after Chinese Lunar New Year. There’s also growing uncertainty about U.S. consumer demand for goods given the broader acceleration in inflation and a shift back to services.

Advertisement 7

This advertisement has not loaded yet, but your article continues below.

Article content

Asia

Containers full of frozen food and chemicals are piling up at China’s biggest port in Shanghai as the lock down of the city and virus testing means truckers can’t get to the docks to pick up boxes. Shanghai is now the epicenter of China’s worst Covid outbreak in two years, with almost 20,000 new cases reported just on Wednesday. 

Japan’s household spending dropped in February for a second straight month amid virus restrictions, adding to evidence that the economy contracted last quarter as Prime Minister Fumio Kishida’s government mulls support measures. Outlays fell 2.8% from January, led by drops in spending on transport, communications and housing.

Japanese households’ inflation expectations climbed to the highest level in more than 13 years as rising energy costs impacted sentiment, even as overall price gains remain well below the Bank of Japan’s target.

©2022 Bloomberg L.P.

Bloomberg.com

Share this article in your social network

Advertisement

This advertisement has not loaded yet, but your article continues below.

Top Stories Newsletter logo

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Thanks for signing up!

A welcome email is on its way. If you don’t see it, please check your junk folder.

The next issue of Financial Post Top Stories will soon be in your inbox.

We encountered an issue signing you up. Please try again

Comments

Postmedia is committed to maintaining a lively but civil forum for discussion and encourage all readers to share their views on our articles. Comments may take up to an hour for moderation before appearing on the site. We ask you to keep your comments relevant and respectful. We have enabled email notifications—you will now receive an email if you receive a reply to your comment, there is an update to a comment thread you follow or if a user you follow comments. Visit our Community Guidelines for more information and details on how to adjust your email settings.

Categories: Financial Tags: "Women'S Business Casual, Amazon Fba Business, Atlanta Business Chronicle'S, Boss Baby Back In Business, Business Administration Degree, Business Attire Women, Business Card Design, Business Cards Templates, Business Casual Dress, Business Casual Outfits, Business Checking Account, Business Credit Card, Business For Sale Near Me, Business Intelligence Platform, Business Lawyer Near Me, Business Loan Calculator, Business Name Ideas, Business Professional Women, Business Spectrum Login, California Business Entity Search, Capital One Spark Business, Carl Weber'S The Family Business, Charlotte Business Journal, Custom Business Cards, Delaware Business Search, Fl Sos Business Search, Florida Business Search, Harvard Business Publishing, Insurance For Small Business, Kelley School Of Business, Maryland Business Express, Maryland Business Search", Moo Business Cards, National Business Furniture, New York Business Search, Ohio Business Gateway, Onedrive For Business, Online Business Ideas, Paramore Misery Business, Risky Business Cast, Small Business Insurance, Spectrum Business Customer Service, Tom Cruise Risky Business, Us Small Business Administration, Verizon Wireless Business, Verizon Wireless Business Login, Virtual Business Address, What Is Business Administration, Yelp Business Login, Yelp For Business

Post navigation

Apartments sold and rented – Globes
Is social media (re)traumatizing you? – TechCrunch

Recent Posts

  • Fintech focused LHV UK bank opens its second UK hub in Leeds
  • Stable closes a $60m Series B to bring calm to commodity market chaos
  • Sequoia warns on long crisis and slow recovery
  • 5 things to know before the stock market opens Wednesday, May 25
  • Is There Unemployment for Self Employed People?

Archives

  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018

Categories

  • Business News
  • Capital Market
  • Financial
  • General
  • Property & Casualty
  • Sky Business
  • Stock Market

bayar.ooo

Visit Now

travel insurance

BL

LP

TL

Intellifluence Trusted Blogger
thedomestikatedlife.com All Rights Reserved | Magpaper by Theme Palace
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT