Inflation in the EU hit a record high of 10.9% in September. Food inflation is largely the result of two factors: rising prices for fuel and rising prices for plastic used to make food packaging. Together, fuel and packaging constitute a large share of costs for certain food items, especially in the price of imported goods such as fruits and vegetables, which are often transported from afar and require reliable packaging to preserve their consumer properties and shelf life.
The EU from July banned imports of Russian polypropylene and other polymer products – the compounds from which most plastic packaging is made – and imposed further import restrictions this fall.
There are no signs that the problem with packaging and inflation will ease any time soon. Although the European Central Bank is planning a further rate increase to curb inflation, the EU economy is likely to see higher inflation numbers in the coming months. As the Dutch Rabobank put in its research, inflationary pressure will continue to rise throughout 2022, “with food packaging being a major contributor, due to high demand, supply disruptions, and cost increases.”
Source: london-globe.com