"Apocalyptic food prices" - British central bank chief raises alarm about Ukraine

Created: 05/17/2022, 10:13 am

Supermarket prices are rising and there is no end in sight.

© Frank Hoermann/Imago Images

Food prices have risen sharply in recent weeks - but there is no end in sight - on the contrary.

LONDON - The Ukraine war is already having a massive impact on food prices in Germany and the EU.

The rise in prices for edible oils was particularly noticeable.

According to the Federal Statistical Office, you now have to pay 36.7 percent more for this than in the previous year.

But it could get worse.

In view of the Russian war of aggression against the important agricultural country, the British central bank chief Andrew Bailey has now warned of "apocalyptic" price increases for food.

Ukraine has sufficient stocks but cannot export the goods, Bailey told a parliamentary committee in London.

Ukraine-News: Food prices before further increase

"It is a major concern for this country and a major concern for developing countries," the Bank of England governor said on Tuesday, according to British media.

"Sorry to be apocalyptic, but that's a big problem."

In March, food prices in Great Britain had already risen by 5.9 percent.

In Germany, the inflation rate in April was a whopping 7.4 percent.

The price increase for food was even 8.6 percent.

Economists expect the increase to continue.

Ukraine is important primarily as an exporter of wheat and a producer of sunflower oil.

Ukraine News: Bank of England boss warns of “real wage shock”

Bailey warned that rising energy and food prices would fuel inflation while triggering a "very large real wage shock".

Ultimately, unemployment will rise again.

Inflation had recently climbed to 7 percent in Great Britain, and the Bank of England expects consumer prices to rise by up to 10.25 percent this year.

According to experts, millions of people in the country could slip into poverty and debt because of rising prices, especially for food and energy.

The central bank could not have done otherwise, Bailey assured.

"We can't predict things like wars, it's in no one's power." When asked if he felt helpless to do anything about rising inflation, Bailey said: "Yes." The Fed chairman called for workers - especially with higher ones Income - they should 'think and reflect' before demanding wage increases and fueling inflation further.