Jun 22, 2022 (MENAFN via COMTEX) --
(MENAFN - AzerNews)
By Trend
Food inflation in the eurozone is likely to remain high due tothe Russia-Ukraine crisis and the surge in global commodity prices,according to the European Central Bank's (ECB) monthly EconomicBulletin published on Tuesday, Trend reports citing Xinhua .
The significant increase in food inflation since mid-2021 hasbeen driven primarily by the rise in international food commodityand energy prices, which was only accelerated by the Ukrainecrisis, the bank said.
The strong repercussions of the crisis for the eurozone areexplained by 'its direct impact on production and export capacityin Ukraine and by trade restrictions and increased uncertainty inUkraine, Russia and Belarus,' the report said.
The ECB said it was concerned that access to certain foodcommodities, such as maize, oil seed, wheat and sugar, which theeurozone countries mainly import from the regions affected by thecrisis, especially from Ukraine, is and will be negatively affectedover the longer term.
Moreover, the eurozone 'imports more than a quarter of itsfertilizer from the affected region, which is difficult to replacefrom other sources.'
'Differences in HICP (Harmonized Index of Consumer Prices) foodinflation among eurozone countries may widen further goingforward,' since small open economies are more exposed tofluctuations in international commodity markets, the reportsaid.
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