Food inflation in the United States will take longer to subside
Seth Meyer, chief economist at the U.S. Department of Agriculture, said on Tuesday that lower commodity prices would take longer to ease food inflation in the United States than in the developing world, Reuters reported. .
Some of the world’s poorest countries were hardest hit by soaring corn and wheat prices after Russia invaded Ukraine’s main grain producer in late February, due to their dependence on imports and the high percentage of income that consumers spend on food.
Meyer said developing countries in North Africa and elsewhere could be the first to see some relief in grocery store prices as staple crops have fallen to pre-war levels and crops north -Americans are developing.
“It’s a more immediate effect. Lower commodity prices reduce the import bill for some importing countries and may moderate some of what we’ve seen with food price inflation,” he said. said Meyer at an agriculture conference in Sao Paulo.
Global food prices fell for the third consecutive month in June but remained close to record levels set in March, the UN food agency said earlier this month.
Meyer said in the United States there would be a bigger disconnect as food goes through more processing and complex supply chains. Consumer prices in the United States accelerated in June as gasoline and food prices remained high, leading to the largest annual increase in inflation in 40.5 years.
“Wheat, corn, or rice is a pretty small portion of the food dollars that consumers spend,” Meyer said. “The more a product is processed, the longer the transmission lag to food price inflation and the more rigid producer prices are for more processed products.”