Breakfast will be more expensive again. Food prices continue to go up

Commodities are the worst performing asset class this year. However, this does not apply to food raw materials, a significant part of which is still becoming more expensive. The eToro Breakfast Index is up 3% since the beginning of the year. According to the Central Statistical Office, food prices have increased by 19% over the last year.

eToro Breakfast Index

Bloomberg Commodity Index (BCI), a broad commodity index, fell by nearly 10% this year. Commodities are currently the worst-performing asset class after being among the top performers for the last 24 months. The current decline was mainly due to the drop in the price of crude oil and natural gas. However, some of the less popular food raw materials overcame this weakness and recorded double-digit increases. And this means that the average Pole's breakfast may become more expensive again.

The eToro Breakfast Index consists of the current global prices of eight food commodities, including: wheat, cocoa, oatmeal, pork, orange juice, coffee and milk. No nutritious Polish breakfast can do without most of these products, either directly or in processed form. Since the beginning of the year, its value expressed in PLN has increased by 3%. In the case of prices in dollars, the value of the index increased by 8 percent, but at the same time, the zloty strengthened against the dollar by 5,5 percent.

The culprit behind these increases are shortages of supply of these commodities on the global market and weather disturbances. This situation may worsen as the El Niño weather phenomenon intensifies. Despite the fall in inflation, consumers are therefore still affected by increases in food prices in supermarkets. According to the Central Statistical Office data for May, food prices have increased over the last year percent At the same time, food prices increased by 7 percent in the US at 15 p.m percent in the EU and at 19 percent in the UK.

What goods were the most expensive?

Leads this year's growth sugar (+ 28 percent), Orange juice (+ 19 percent), Kakao (+ 17 percent), kawa (+ 6percent). On the other hand, wheat prices fell (-24 percent), pork (-24 percent), milk (-19 percent) and oat flakes (-3 percent). Sugar - due to weather problems and export restrictions in India, which is the second largest producer of this commodity - reached an 11-year high. This is also due to the growing demand for biofuels in Brazil. Orange juice prices, on the other hand, are close to all-time highs, especially after the hurricane and the damage done to citrus growers in Florida.

Change in current world prices from the beginning of the year to June 14.06.2023, XNUMX in USD and PLN

Source: eToro

About the author

Pawel Majtkowski - analyst eToro on the Polish market, which shares its weekly commentary on the latest stock market information. Paweł is a recognized expert on financial markets with extensive experience as an analyst in financial institutions. He is also one of the most cited experts in the field of economy and financial markets in Poland. He graduated from law studies at the University of Warsaw. He is also the author of many publications in the field of investing, personal finance and economy.