Energy prices have risen to an extreme high. And inflation is increasing. Soon, bread rolls could cost more than one euro. That depends on several factors.
Grain prices were higher in August than they had been for over eight years. According to the Federal Statistical Office, they increased by 34.4 percent. The industry warns that bread rolls could soon cost more than one euro.
However, the massively rising grain prices are by no means solely responsible for a possible rise in the price of bread and rolls. According to the German Farmers’ Association, the exact reason is not so easy to determine. “In order to raise the price of bread rolls by just one cent, the price of grain would have to double,” they say.
Inflation: grain prices depend on several factors
On the other hand, the costs of energy and labor have a more significant impact on the price. The weather also had a significant impact on the grain harvest in Germany. The frequent rain in summer in large parts of the country leads to falling quantities, according to a forecast by the Federal Ministry of Agriculture in August.
The German farmers would bring in a total of 42.1 million tons of harvest – a decrease of 2.7 percent compared to 2020. Compared to the average for 2015 to 2020, this is even 4.8 percent less. In addition, the quality of the harvest is only mediocre. The situation is no different in traditionally important producer countries such as the USA, Russia and Ukraine.
Massive price increases for many products
From the point of view of bread wheat producers, however, things are not going badly at the moment. According to a market report by the Rhineland-Palatinate Chamber of Agriculture, they receive an average of 230 euros per ton, which is around five euros more than last week. A year ago the prices were between 150 and 185 euros.
There is therefore great concern about rising inflation and, ultimately, rising prices for rolls and bread. Plant products in particular were significantly more expensive with a plus of 23.4 percent – mainly due to higher prices for grain and rapeseed. Overall, the producer prices of agricultural products experienced a price increase of 13.3 percent in August 2021 compared to the same period of the previous year. Compared to the previous month, this is an increase of 1.2 percent. So far, however, inflation has hit energy prices hardest. Heating oil cost 76.5 percent more in September than a year earlier, and fuel 28.4 percent more.
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Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
