In the latest report from the US Bureau of Labor Statistics,The overall consumer price index – a measure of changes in average prices over time for goods and services purchased by US households – fell 0.8% in April, the biggest one-month decline since 2008.
However, the seasonally adjusted home food index – a proxy for inflation in the level of foodstuffs – rose 2.6%, driven by overall price increases, with significant egg price increases (+ 16.1%), meat (+3, 3)%), chicken (+ 5.8%) and cereal & bread products (+ 2.9%) when supply chain disruptions begin to impact retail prices.
The FAO sugar price index is at a 13-year low
At the same time, UN FAO Food Price Index, Which tracks international prices of the most commonly traded food commodities, down 3.4% in April, while the sugar price index reached a 13-year low as falling oil prices reduced demand for sugarcane to produce ethanol, shifting output to sugar production and expanding availability export.
The FAO Vegetable Oil Price Index, meanwhile, fell 5.2% in April, partly driven by a decline in demand for biofuels, a decline in demand from the food sector and palm oil production that was higher than expected in Malaysia and the destruction of soybeans in the US.
The FAO Cereal Price Index fell only slightly, as international prices of wheat and rice rose significantly while corn prices fell sharply.
Double digit decline in global butter and milk powder prices
While milk prices rose slightly at US grocery stores, meanwhile, the FAO Dairy Price Index fell 3.6%, with butter and milk powder prices falling double digits amid increased export availability, increased inventories, weak import demand, and decreased sales restaurant in the US. northern hemisphere, FAO said.
This report was released as a coalition of dairy organizations from Argentina, Brazil, Chile, Costa Rica, Ecuador, Guatemala, Mexico, Paraguay, Uruguay and the United States. express fearThat the EU intervention program to buy skimmed milk powder (SMP) and butter will damage the world market “replacing commercial competition as the world began to recover from the direct effects of the COVID-19 pandemic. “
European Commission ‘must avoid throwing up SMP and butter purchased by the government on world markets’
European Commission “Must avoid throwing up junior high school and butter bought by the government on the world market,“Add a coalition, which urges the EU to adopt measures to spur consumption within the EU instead.
“Exporting large quantities of skimmed milk powder and butter purchased by the government at prices below market prices to world markets will extend to the extremely challenging environment in which the milk sector operates around the world. “
While most reports on price fraud related to coveted items such as hand sanitizers and face masks, egg producer Cal-Maine Foods was recently hit with a law suit in Texas accusing it of being involved in price sculpting during the COVID-19 pandemic, a charge which he strongly denied. .
In a statementOn its website dated April 24, the company notes: “Cal-Maine has not exploited this tragic national pandemic to get … The recent rise in egg prices is directly related to unprecedented retail demand, which also occurs during the peak of the Easter season when egg demand is usually high, not the result of picking up prices or other inappropriate behavior by Cal-Maine Foods. The company does not sell eggs directly to consumers or set retail prices for eggs. “
On May 13th blog postHighlighting the surge in complaints about price gouging, Amazon VP public policy Brian Huseman said the company had deployed “dynamic automated technology to proactively search and withdraw bids at unreasonable prices, “But called on lawmakers to pass federal laws against gouging.
“The effects of the coronavirus pandemic on the food industry are characterized by contrasting dynamics, which very often depend on regions and products. In some markets, supplies may be abundant at the upstream levels of agriculture and fisheries, but markets remain tight and prices are firm due to logistical factors, such as port closures. or limited movement.
“The markets that experienced panic buying behavior in Q1 2020, slowly rearranged, because some initial worries disappeared. However, it remains to be seen whether there will be a prolonged change in some market fundamentals, because countries emerge from social. For example, some markets, such as hospitality and catering may remain depressed for months after official restrictions are lifted, if consumer confidence remains low. “
While sales growth in some CPG categories has risen after a surge at the end of March, total US CPG sales still rose 19.5% YoY in the week ending May 2, according to Nielsen.
Some food categories also show continuous triple-year (year-to-year) growth in the week ending May 2, including:
- Wheat milk: + 271.9%
- Alternative fresh meat: + 227.5%
- Baking powder: + 168.9%
- Bread yeast: + 128.1%
- Flour: + 105.2%
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