Global inflation

The prices of everyday basic foods are escalating across the world. More so, in developing countries like India and in the African continent. Prices of items like flour, sugar, oil, lentils, are increasing about seven to 15 per cent per annum.

This makes a big hole in the pockets of daily wage earners like farm labourers and also the white-collar salary earners.

Amongst lower middle-class families and the poorer segments of the population, many families are actually cutting down on consumption to make ends meet.

Whilst the official inflation data in many countries shows an inflation of five to six per cent, the escalation at the retail outlets is often over 10 to 15 per cent per annum. Agricultural production was adversely impacted across countries during the pandemic. Farmers could not till their lands and labour was short. The supply-chains between countries had ruptured, due to disruptions in shipping.

The pandemic is behind us now. However, the war between Ukraine and Russia has again depressed food supplies. Ukraine is a major producer and exporter of wheat, oilseeds, soya, etc. People across the world, in the developed markets in the West, and in developing countries like India and Africa, are feeling the painful pinch of rising food prices. Restaurants all over the world are reporting drops in sales, due to inflation. Consumers in India are reducing expenses on foods and also other durables like cars, due to high inflation.

Rajendra Aneja,

Mumbai, India