Ukraine: Russia invasion 'could increase food prices' says Smith
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
Copper prices have skyrocketed to five-year highs since Russia launched its brutal “full-scale invasion” of Ukraine. And aluminium and nickel prices have also soared by 30 percent since the start of the year. According to Matthew Chamberlain, head of the London Metal Exchange (LME), this means the cost of canned goods are likely to soar.
He told BBC’s Today Programme: “We’ve seen aluminium and nickel up 30 since the beginning of the year, and that will ultimately be passed on to consumers when you buy your drinks can made of aluminium, or when you make renovations to your house and you need copper for your wiring, all of those prices do go into the overall inflationary pressure.”
This comes as inflation has been rising, sparking a cost-of-living crisis that will force Britons to pay more for other goods too.
Market research firm Kantar said inflation in February was 4.3 percent, with prices rising fastest for savoury snacks, fresh beef and cat food, while the cost of bacon, beer, lager and spirits fell.
Fraser McKevitt, head of retail and consumer insight at Kantar, said: “Apart from the start of the pandemic, when we saw grocers cut promotional deals to maintain availability, this is the fastest rate of inflation we’ve recorded since September 2013.
“Added to this, ongoing supply chain pressures and the potential impact of the conflict in Ukraine are set to continue pushing up prices.”
This also comes after Russia banned ammonium nitrate, a chemical used in the agriculture industry as a fertiliser to boost yields for crops like corn, cotton and wheat, for two months.
Brandon Weichert, a geopolitical analyst told Express.co.uk that this would send food prices soaring.
He said: “The decision to sanction fertilizer exports going from Russia to the rest of the world is massive, especially when paired with China’s decision to ban the sale of phosphate fertilizer until June of 2022.
“These twin moves will spike the overall price of agricultural goods–meaning you and I and our families will be paying much more for groceries.”
“Gas, groceries, all of the essentials for our modern life are about to explode in price, in large part because of the foreign policies of Washington, Moscow, and Beijing.”
And gas and electricity bills have already been soaring for millions of Britons, while petrol supplies have come into question as global energy prices surge.
Britons were warned that they may have to fork out as much as £3000 to pay off bills if the energy price cap (maximum tariff) rises again as a result of global shocks to the market.
The stark warning came after earlier confirmation from energy regulator Ofgem that the April price cap will rise to £2000, a 50 percent increase.
On top of this, the average price of a litre of petrol rose to £1.53 a litre, and diesel to £1.57 a litre on Thursday, marking a 1p rise from the previous day.
DON’T MISS
Russian troops are ‘running out of gas and food’ as Putin dealt blow [REVEAL]
Scholz’s masterplan backfires! Putin sends gas reserves into freefall [INSIGHT]
Scholz to send Ukraine 2,700 soviet-made weapons [REPORT]
RAC fuel spokesman Simon Williams said the Ukraine crisis will make this even worse.
He said: “A rise of 1.5p in the average cost of a litre of petrol over the space of just seven days serves to highlight what a torrid time drivers are having at the pumps.
“This is on top of the 2p increase they suffered in the first three weeks of February. Drivers will be wondering if prices will ever stop rising.
“But the conflict in Ukraine is only likely to make matters worse.”
Source: Read Full Article