The Day at a Glance | April 8 2022

The Top

*Food prices increased 13% in March; 75% since mid-2020, according to the FAO.

*Interest rates still need to be increased in 300 base points during the second half of 2022; James Bullard, St. Louis FED.

*SCJN validates changes made to the Electricity Industry Law, which gives the CFE superiority concerning the distribution of electricity.

*Russian troops are accused of bombing a train station in Donetsk, where civilians were waiting to be evacuated.

*Japan joins sanctions against coal imported from Russia.

Economic environment

Food prices logged record high levels in March. According to indicators made known by the United Nations Food and Agriculture Organization (FAO), food prices increased 13% in March and reached record levels after the impact that the war had on grain and edible oil prices. The FAO`s Food Price Index set at 159.3 – its highest level in history – after disruptions occurred in Russian and Ukrainian exported foods due to the armed conflict. Grain prices logged a 17% increases, while vegetable oils rose 23%. Important increases were also reported regarding sugar and dairy products. The FAO even estimates a 20% drop in Ukrainian wheat production as winter crops are not expected to be harvested. Prior to the war, the indicator was already set at its highest level in 10 years, and has been one of the most important contributors to the rise in inflation at a global level. The rise in food prices also threatens to trigger social instability in low income countries.