Sunday, July 21, 2024

Why are food prices rising significantly in some countries compared to others?

europe_june2023_inflation.jpg

Food in Europe continues to rise in price: in June, the price for it increased by an average of 14-15% yoy. At the same time, in countries from the top 3 in terms of food inflation, food prices rose much more: in Turkey by 54.3%, in Hungary by 28.4% and in Serbia by 24%.

The map shows the dependence, the closer a country is to the military conflict in Ukraine, the higher the inflation.
Why is that so?
In reality, it is because neighboring countries are paying the price for maintaining the collapsed former Soviet republic. These are mostly fuel, ammunition, spare parts.
Of course, this is not the only cause of inflation. The policy of the US Federal Reserve and that of the European Central Bank also has a serious impact on inflation in Europe.
And one more very important reason, until a year ago Europe paid relatively cheaply for raw materials from the Russian Federation. Now the United States has taken the place of the Russian Federation, which resells Russian raw materials to Europe.
In Turkey, inflation is due to other factors, rather related to the geopolitics that Erdogan is trying to conduct.

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