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Food prices have not stopped rising in France, with inflation of 16.2% in one year. Rising prices lead consumers to change their purchasing habits, often to the detriment of their own health.
By Ana Carolina Peliz
“All prices are high, but what worries us the most are the prices of cereals, which are currently very high. We are at the same price level that was observed at the time of what we call ‘hunger riots’ in the Maghreb between 2010 and 2011, this is worrying,” says Philippe Waechter of consultancy Ostrum Asset Management, interviewed by RFI.
“RWe stand for quality”
The economist refers to the Arab Spring, riots that have taken place in many countries and that began with the rise in food prices in December 2010. “This leads consumers, especially in the poorest countries such as African , to give up these products and look for less nutritious foods. This causes another problem that goes beyond the price of food,” he says.
But with high inflation, consumers in richer countries like France also have choices to make. “We have changed our way of consuming because prices are higher, we eat less meat, we give up quality, we buy cheaper brand products,” says the economist. “People are more aware of consumption in this new situation that should last for some time yet,” analyzes the researcher.
He explains that, although it is not a new situation, the current increase in prices is more significant, especially in the case of cereals and oils, which were already rising before the conflict in Ukraine, which caused a record increase in food prices.
“Real Food Safety Problem”
The increase in the prices of oil, gas and pesticides was reflected in that of raw materials, and the energy shock is reflected in that of processed food products, says the expert. Although the price of electricity and pesticides in Europe have returned to pre-war levels, the decline is not likely to be immediately reflected in food products. “We will probably have to wait until the fourth quarter of the year,” estimates Waechter.
The increase is also related to climate change. “All the IPCC studies and reports show that we will have a real agricultural production problem and we are already noticing it. We saw it in 2022, in 2021, with all the wheat production problems, for example, linked to weather conditions,” exemplified.
“So there are already real problems and these issues will not be resolved spontaneously. We are going to have a real food safety problem in the coming years, and that is going to be a major issue,” warns the expert.
“How are we going to manage this situation with more degraded climatic conditions, with the obligation to satisfy the demands of the population? This equation is difficult to solve and translates into higher prices,” concludes Philippe Waechter.