The head of the UK central bank has warned that food shortages due to the crisis in Ukraine pose an “apocalyptic” threat to UK consumers.
Bank of England Governor Andrew Bailey has warned the country’s elected officials that food shortages caused by the ongoing war in Ukraine poses a threat of “apocalypse” for Britain.
Bailey said that the shortage of wheat and edible oils due to Ukraine’s inability to export may lead to serious inflationary pressure, which will further affect the finances of British consumers, as Ukraine has a large share in world trade in grain and sunflower oil. .
Speaking before the UK Treasury committee, the Bank of England czar said that he and his officials believed that inflation would rise by around 10 percent in the fourth quarter of this year, but that the crisis was due to the fact that Russia, like Russia, had cut the EU out of the EU. Further disruption to trade routes with China due to restrictions on fuel supplies or COVID-related could worsen the situation significantly.
The Bank of England chief has described the current threat to global food supplies as “apocalyptic” as Russia invades Ukraine.
“It’s not just a big problem for this country, it’s a big problem for the developing world as well.” – Andrew Bailey pic.twitter.com/8b5nEOa1VI
– Best for England (@BestForBritain) 16 May 2022
Food insecurity caused by the war in Ukraine was also cited as another major external risk facing the UK. Bailey told lawmakers that while Ukraine’s finance minister knows he was optimistic about planting crops during the war, the country’s hardship in exports poses a risk to world food prices.
“I’m afraid – I think – it will be quite apocalyptic – food – food,” he said, noting that global growth will hit the pockets of ordinary people. .
A British government official said he was “shocked” by the Bank of England chief’s statement about how dire the dangers were for the people of England, despite other warnings about the massive rise in food prices over the past few months. .
“I was a little surprised to see this particular phrase, because we all see clearly that prices can move pretty quickly in one way or another,” Conservative Party leader Brandon Lewis told Sky News.
“I can’t comment on anything [the bank of England] “Apart from saying yes, I was surprised to see the terminology there – especially for supermarkets, with it being clear that food… pre-ordered and purchased,” he continued.
Global food crisis: India’s export ban pushes wheat prices to record high in Europe https://t.co/tMFTS1Jhhk
– Breitbart London (@BreitbartLondon) 17 May 2022
Governor Bailey stressed that rising food prices will hurt UK consumers, but developing countries are more at risk, as other officials around the world have warned.
“[Food insecurity is] Not only is – I must say – a big concern for this country, it is also a big concern for the developing world,” he said.
But Bailey did not mention that the global food trade is also threatened by other factors, such as India’s wheat harvest failure due to a local drought. .
India’s ban was cited as the main reason why wheat prices hit a record high in Europe on Monday.
All of this, in turn, means that people in developing countries may soon have trouble finding enough food to feed themselves, their families, and officials everywhere. The world is warning of famine as a result of rising food prices.
“Extreme hunger is reaching unprecedented levels and the global situation continues to worsen,” said David Beasley of the World Food Programme.
“Conflict, climate crisis, COVID-19, and rising food and fuel prices have created a perfect storm, and now there is a war in Ukraine that is catastrophic,” the former Southern governor continued. carolina “Millions of people in dozens of countries are on the brink of starvation.”
“We urgently need urgent funding to get them off the cliff and reverse the global crisis before it’s too late,” he warned.
Source: Breitbart
