World prices for grains, meat and dairy products, among other things, have fallen significantly recently. This is evidenced by the figures of the Food and Agriculture Organization of the United Nations. The exception is sugar, which has actually become more expensive in the past year.
Market prices for sugar were at least 14.9 percent higher last December compared to the previous year. In previous months, this difference was greater. The fact that sugar has become much more expensive is mainly due to drought in Thailand and India, which are important producers.
In fact, other staple foods have become less expensive in the past year. For example, dairy products and grains were more than 16 percent cheaper last month than a year earlier. Prices of vegetable oils, such as sunflower oil and soybean oil, have also fallen by more than 10 percent in one year.
Falling trade prices for food can have consequences on the prices we pay for groceries. For example, the rise in the price of sugar caused the prices of sweets and cakes to rise.
But if meat, grains, dairy products and oils become cheaper on the global market, it could actually lead to lower grocery prices. It remains to be seen whether this means supermarket prices will actually fall. There is more to it than that, for example wages, rents and energy prices.
However, Jumbo announced earlier this week that it will reduce the prices of a number of products this year. The country’s second major supermarket chain did not inform about the items in question and to what extent the price would fall.
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