Food in the US is becoming more expensive at a historically record pace

Global Look Press / Paul Hennessy / Keystone Press Agency
Global Look Press / Paul Hennessy / Keystone Press Agency

Washington, 11 August. US food prices rose sharply in August. This is with reference to the report of the US Department of Labor reports Bloomberg.

Average food prices in the country rose 10.9% year-over-year, the biggest increase since 1979, officials said. At the same time, for individual commodity items, the price increase set historical records. Among such products were cereals, frozen fruits and vegetables, ready-made soups and baby food. In addition to them, dairy products, eggs and instant coffee most significantly increased in price.

Even though the decline in fuel prices led to some easing of inflation in July, rising food costs, as well as further increases in housing rents, still pose risks for millions of US households.

Experts explain that the rise in food prices is due both to the ongoing effects of disruptions in supply chains and to the military conflict in Ukraine, which has sharply reduced food supplies. Another important factor was the introduction of anti-Russian sanctions that affected the export of Russian food, fertilizers and energy. It also spurred the rise in world food prices.

Global Look Press / Boris Roessler / dpa
Global Look Press / Boris Roessler / dpa

At the same time, according to Bloomberg, US agricultural corporations have managed to capitalize on high prices. Cargill reported record revenue of $165 billion for fiscal 2022 on Wednesday, following strong results from other big names in the industry such as Archer-Daniels-Midland Co. and Bunge.

Formerly Deputy Director of the Information and Press Department of the Ministry of Foreign Affairs of the Russian Federation Ivan Nechaev confirmed that the West is using the topic of the global food crisis as an excuse to gain control over food markets, since ships with Ukrainian grain take it mainly to Western ports.

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