Warning over bread price due to Russia-Ukraine conflict
Consumers
could soon be paying more for a loaf of bread because of Russia's invasion of
Ukraine.
Economists are predicting prices to go up in the coming months.
According to the Observatory of Economic Complexity, Russia was the world's top exporter of wheat in 2019 at over $8 billion, while Ukraine rounded up the top five exporting countries.
GrainSA economist Helen Viljoen says we have started to see the effects.
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"Starting from the 24th of February what we saw was a significant hike in wheat prices. This is partly driven by market fears of supply shortages.
“What happens is our prices are reflected by global prices so since last week the wheat prices have been a bit volatile and that is because, the news from Ukraine and Russia is starting to look like negotiations are on the table. But it is still unclear will happen.”
