The prices of consumer goods have hit new highs during this calendar year. Food and drink prices are currently surging, rising at their fastest rate for more than 40 years.

There are numerous factors which have caused the prices of these products to surge, many of which stem from the ongoing war between Russia and Ukraine. For example, the price of grain has risen as a result of high yields in Russia and Ukraine, with uncertainty regarding the future of the Black Sea Grain Initiative causing global wheat prices to increase by 2.2 per cent month-over-month (M-o-M) in September. Elsewhere, the price of palm oil was significantly impacted by low production in Malaysia, and Indonesia banning the exportation of the commodity. The two nations account for 85 per cent of the world's palm oil supply.

Looking ahead for the remainder of the year, Bhavika Syal, CPG category expert at The Smart Cube, has given the following predictions regarding the prices of consumer goods for what remains of 2022:

• Grains – Prices for key grains expected to increase during the remainder of H2 2022. Looking forwards, unfavourable weather conditions in key wheat-producing areas – such as Europe, the US and Argentina – are projected to have a negative impact on production, thereby affecting wheat prices. What’s more, barley prices are expected to rise in Q4 2022 due to a continuous rise in demand for barley in the EU and decline in production from Australia and Europe
• Vegetable oil – The price of key vegetable oils is set to decline in the next few months due to abundant supply. For example, palm oil prices are likely to fall in Q4 2022 due to increase in supplies from Indonesia and seasonal uptick in Malaysian palm oil production. Elsewhere, prices of both sunflower and soybean oils are likely to decline due to a sharp fall in the demand for both commodities – on account of previously high oil prices
• Dairy – Dairy prices are likely to witness an uptrend for what remains of this calendar year. This is set to be driven by fluctuating weather conditions, a lack of skilled labour, surging animal feed prices and continuously rising operational costs