Slowdown in EU agricultural price rises
Agricultural prices in the European Union rose much slower in the second quarter of this year. The EU's statistical agency Eurostat says world markets are settling down after recent sharp price hikes.
Russia's invasion of Ukraine disrupted grain supplies, causing prices to soar. Ukraine is also a major exporter of raw materials for animal feed, which became more expensive after the start of the war. High energy and fertiliser prices also contributed to inflation.
On average, EU agricultural products were 2 per cent more expensive in the second quarter of 2023 than a year earlier, Eurostat said. The year-on-year increase was still 17 per cent in the first quarter of 2023.
Drought was the main driver of price increases in spring, including for citrus fruits, olive oil and potatoes. Cereals, on the other hand, became cheaper.
For the first time in almost three years, prices for agricultural inputs such as fertilisers, soil improvers, energy and animal feed fell compared to a year earlier.
A combine harvester harvests wheat in a field near Novosofiivka, Ukraine © PHOTO ANATOLII STEPANOV / AFP