Filenews 9 October 2021
Consumers and businesses are deeply concerned by the expected significant price rises in basic consumer products. The effect on prices is imported, since it is almost exclusively due to the increase in energy costs and transport fares, but also to the prices of raw materials. Bigger increases are expected in coffee, the price of which is influenced by additional factors, such as the significant decrease in production in Brazil.
The ominous predictions for a difficult Autumn in terms of household budgets seem to be confirmed. Market players are talking about "fire" increases in basic consumer products. The prices of raw materials internationally have recorded a rapid increase since March 2020 which peaked in April this year. According to a recent report, in July 2021, compared to the corresponding month of 2020, the prices of the following products increased as follows: Cheese 11%, Milk 20%, Rice 9%, Soybeans 17%, Coffee 26%, Sugar 12%, Poultry 17%, Beef 8.5%.
As can be seen from the above data, coffee is one of the products that is predicted to record the largest increases. This is due, in addition to energy costs and the consequent increase in fares, to problems that have occurred in the supply chain due to Covid 19, but also to a decrease in production in important countries. In Brazil, in addition to the prolonged drought the country has been facing for a decade, two frosts in July further disrupted production, to the extent that Brazilians have informed that this year's weather will also affect the 2022 and 2023 harvests. Colombia, also an important country, had a problem with missions due to political unrest. Other coffee-producing countries have been affected by other phenomena, such as floods, fires and drought.
In Greece, estimates refer to increases in the price of coffee that can range between 10% and 20%. In Cyprus, the big players of the market are currently keeping their cards closed. Market participants estimate that increases will be smaller, with businesses absorbing part of the increased costs. The increase in energy costs and the consequent increase in inflation is of concern to the government's economic staff, but also to the European Union. By decision of the President of the European Council, Charles Michel, the issue will be discussed at the Summit on 21 and 22 October. Barent Leitch, a spokesman for Charles Michel, said that "high energy prices put the purchasing power of our citizens under serious pressure. Many families are still feeling the impact of the effects of the pandemic. In the short term, we need to focus on the immediate concerns for households, industry and small and medium-sized enterprises," Barent Leitch underlined.
