This week we won’t be talking about the 3 big topics, rather we’ll be looking at some of the things happening in the world right now and its impact on the world.
If you don’t already know Russia invaded Ukraine on Thursday, February 24th, 2022. Although this seems like on the other side of the world, its impact can be felt in other countries like Canada.
Lu in 22 tells that Russia’s invasion of Ukraine threatens to spark a global food crisis, as simultaneous disruptions to harvests and global fertilizer production are driving up food prices and sending economic shock waves throughout the world. After a month of war, economists and aid agencies say the world is facing merging crises that could rapidly spiral into a global food emergency.
The conflict has already slashed Russian and Ukrainian exports of crucial commodities such as wheat, sunflower oil, and corn, a disturbance that has rippled across import-reliant countries in the Middle East and North Africa. At the same time, the ongoing energy crunch has drastically increased fertilizer prices and transportation costs, squeezing the key inputs for global agricultural production.
Although Canada is also an agricultural country any decrease in the supply of food around the world impacts Canadian food prices.
Campbell in 22 finds that in early January, Statistics Canada reported that grocery prices increased by 5.7 per cent, the biggest annual gain since 2011, and in December 2021 CBC reported food price inflation is on track to rise further with a likely increase of between five and seven per cent in 2022.
The direct impact of the Russian invasion on food prices isn't clear yet as we are still seeing the impacts change. Keep an eye out for the prices of certain goods the next time you go to the supermarket and compare it to the price before.
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