FOOD PRICE GROWTH: HOW TO MEASURE AND MITIGATE

Abstract

The downward trend in real prices for agricultural products has been a persistent global trend of the past and early 20th millennia.

The purpose of this article is to present tools for creating a price monitoring system to ensure economic access to food, as well as to structure international experience used by various countries to mitigate the negative consequences of rising economic barriers to food access.

Research Methodology: The approaches of the RANEPA Agri-Food Center (hereinafter referred to as the Center) to creating a food price monitoring system are presented. The measures used by various countries to ensure economic access to food in the face of rising prices are systematized. It is noted that the set of tools and their combination largely depend on the country's level of development.

It is emphasized that government support should be transformed from anti-crisis price containment to systemic assistance not only for producers but also for consumers.

Specifically, reorienting border measures and market price controls toward healthy eating does not change its overall accessibility, but increases the cost of food and distorts consumption. The use of integrated metrics is proposed: assessing the real contribution of increased food prices to consumer spending and measuring volatility using a scaled methodology.

Results. The authors note that rising labor productivity, the global division of labor, and cheaper supply chains contributed to this trend. However, since 2020, this trend has undergone a reversal. Price volatility has increased, negatively impacting food accessibility. Therefore, the system for measuring and processing price information needs to be improved to identify critical conditions requiring government support. It is also proposed to develop a library of measures that governments could use to reduce economic barriers to access.