In general news, as the epidemic eases and the economy moves toward recovery, inflation concerns are rising in China and around the world.
Almost all costs of production and distribution in the global supply chain are rising, according to financial media outlet Caixin. U.S. manufacturing giant 3M said shipping costs for its goods continue to climb. Costs are rising in China, including for furniture products, and some toy wholesalers have raised factory prices by 15 percent.
This report analyzes that despite the epidemic blocking consumer spending remains robust, and while almost all countries have adopted economic stimulus programs, producers are unprepared for an oversupply of supplies; and logistics have been affected by the epidemic, causing freight costs to skyrocket.
This is where the inflation of food products became significant. According to an article published in mid-March on the website of the French Institute for International Relations and Strategic Studies, inflation in market-based products has started to become significant since the summer of 2020, especially in food products such as sugar, oil and cereals, according to “Reference News”.com. As a result, the FAO’s Global Food Price Index increases by 27% between April 2020 and March 2021.
As product prices and freight costs rise, some agricultural countries are beginning to implement food embargoes to protect their local markets. Food consumers are being hit harder by these factors. The head of the International Food Program says that more people die from famine every day than from the New Coronavirus (a Chinese communist virus). All indications are that the world’s food security problem will intensify in the coming months and even years, and that the question of how to guarantee quality food for all is a big one.
The issue of food security in China is also looming. According to Chinese official media, People’s Daily, Liang Yan, deputy director of the State Administration of Grain and Material Reserves, and others noted at a State Council press conference on April 2 that China’s 14th Five-Year Plan outline includes a food security strategy in its five-year plan for the first time, indicating that food security remains a major challenge for China and is on the verge of getting worse.
Also according to China’s Economic Daily, several economic experts pointed out that rising global food and food prices will have limited impact on the domestic food market, but may still bring imported inflation.
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