Consumers could be hit by even higher food prices in 2023

Inflation has continued to increase in the last year, leading to higher prices for consumers purchasing some types of products, including essentials like food and gas. 

Higher food prices for grocery shopper has been one of the leading causes of concern. Despite overall inflation easing slightly in recent months, the annualized food-price inflation rate was recently reported to be 10.4% – nearly four points higher than most other types of product. 

Experts have warned that this could continue to get worse in 2023, with the price of essential food items rising due to the impact of the Russian invasion of Ukraine, supply chain issues, extreme weather, and the ongoing effects of the COVID-19 pandemic. 

These issues are still affecting the price of food, as suppliers are paying more for fertilizer and feed, as well as labor, transportation, and other essential costs. 

According to recently collected data from FoodMarket.com, certain products have been impacted much more than others. For example, the report shows that dairy prices have soared because of temperature changes. Data shows that butter costs nearly $1.50 more than this time last year due to higher temperatures and less milk being produced. 

It also points out that products made from vegetable oil, sunflower seeds, and sunflower oil, corn, and soybeans saw a huge rise in prices because of the war in Ukraine. 

Ukraine is the world’s main exporter of sunflower oil and the third-largest supplier of vegetable oil, and the war has led to a drop in production. 

This affects a range of products, including margarine, which has become 43% more expensive in the last year. It also affects other products like potato chips, pre-packaged and microwave snacks, baked goods, crackers, fried foods, and other items. 

Furthermore, nearly 40% of vegetable oil is used in the production of biofuels, which are used for transportation fuels and heating, and electricity generation.