MACEDONIA AFFECTED BY A RED TSUNAMI: Food with the highest prices in the past seven years

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The latest May data also show an increase in prices, and thus an increase in the cost of living. The National Bank has already increased the inflation projection this year – to a level of 2.2 percent, writes “Portalb“. The price tsunami on the world stock markets affected Macedonia as well.

Rising food and oil prices – Macedonia and the region affected by the price called “tsunami”.

Edible oil prices continue to rise. After March, and in April, the statistics registered an increase in the cost of living by 2.2 percent compared to the same month last year, and compared to March the growth is by 0.7%. But what is noticeable is that on a monthly basis there are higher growth rates in basic food products.

Cost of living April / March

Oil and fat 10.8%

Liquid fuels 15.6%

Fruit 4.2%

Vegetables 4.4%

Transport services 4.3%

Air transport 9.8%

Source SSO

The increased cost of living is determined by the price growth, so the latest data show that in April compared to the same month last year, retail prices increased by 3.7%, mostly non-food products and tobacco by 6.8% and industrial products by 5 , 1%.

“Portalb” has already analyzed that the country is under a surge of price wave. A liter of cooking oil has already reached 97 denars. It is noteworthy that higher prices have higher prices for educational products such as chocolate and confectionery, but pastries are also more expensive.

“Pastries have become more expensive since a few days ago. Here, the pretzel costs 18 denars, we increased it by three denars,” a saleswoman from a Skopje bakery told us.

The growth of prices will continue, but still the inflation will remain moderate – assures the National Bank, which for this year revised the inflation forecast to 2.2%

“In oil, after a decline of 35% last year, growth of about 38% is now expected, and then a moderate decline next year. Similar price dynamics is expected with other energy sources, food and metals” – said the NBRM and explain:

“Risks for the projected inflation path are mainly related to the uncertainty about imported prices of primary products which are highly volatile, possible supply constraints related to the pandemic, as well as the possible faster and more complete transfer of growth in input prices to final product prices.”

This trend of price growth in the country is expected given that the world stock exchanges have already registered “peak” prices of basic food products and raw materials for production – the highest in the past seven years. According to the data from the Food and Agriculture Organization, sugar is more packaged by 60%, cereals by 26%, and oils by 24.1%.

The countries in the region are also facing rising inflation, in Serbia, in April, registered monthly inflation of 1.1% and annual inflation of 2.8%. The world economies are also facing rising inflation – Annually, in April, the United States registered an increase of 4.2 percent, which is the largest price increase since September 2008. While the statistics show an increase in prices, the value of the “denar” is melting under the influx of price increases. More than 42% of the cost of living reflected through the CCM Trade Union Basket is for food and beverages, and almost 32% for housing – which means that as much as 74% of the costs are for bills and food.

Cost of living (SSM) – April

Food and beverages 14,332.46 denars

Housing 10,809.32 denars

Hygiene 2,386.00 denars

Transportation 2,503.83 denars

The rest of the costs are for Clothing and Footwear, Culture and Health.

“Trade union basket for April 2021 has increased by 204.00 denars compared to the previous month for March 2021 due to the evident increase in the cost of living indices for April, namely food and beverages by 1.2%, Clothing and footwear for 1% and Hygiene for 1.1% ”

According to SSM calculations, in order to enable “elementary” monthly living, 33,976 or 550 euros are needed.