Asymmetric food price shifts

Data presented by the Hellenic Statistical Authority on Friday showed that prices increased further last month at a time when many were convinced that they would drop a tad.

Although in April food prices showed a marginal decrease of 0.1% compared to March 2023, that was reversed in May with price increases of 1.8% on a monthly basis. In fact, basic food items such as flour recorded an 8% price increase in May compared to April. Year-on-year food prices climbed 11.6%. 

This development postpones until later - at best after the summer - the end of the food price hike cycle, an end which initially market players had estimated would occur at the end of the first half of 2023. That estimate was of course made under the condition there would be no unforeseeable events and based on the existing forecasts about the global production of basic products such as grains and...