[News Terms] Sugar Prices Hit Highest in 11 Years and 6 Months... Concerns Over 'Sugarflation'

World Sugar Prices Reach Record High
Concerns Over Rising Prices of Processed Foods Like Snacks and Ice Cream

Global sugar prices have risen every month this year, reaching their highest level in 11 years and 6 months since October 2011.

As the rise in sugar prices prolongs, concerns are emerging that 'Sugarflation' could be triggered.

Sugarflation is a portmanteau of sugar and inflation, referring to the phenomenon where prices of products using sugar as a raw material, such as snacks, ice cream, and beverages, increase one after another.

[Image source=Yonhap News]

According to the Ministry of Agriculture, Food and Rural Affairs and the United Nations Food and Agriculture Organization (FAO) on the 7th, the global sugar price index in April was 149.4, up 27.9% compared to January.

The price index is a figure that compares prices based on the average price from 2014 to 2016 set at 100, and the global sugar price index rose monthly from 116.8 in January to 125.2 in February, 127.0 in March, and 149.4 last month.

The rise in sugar prices is due to expected decreases in production in producing countries such as India and China. Although Brazil's sugarcane production is expected to be favorable, harvesting has been delayed due to increased rainfall.

Additionally, the rise in international crude oil prices and the strengthening of the Brazilian real against the US dollar have also influenced the increase in sugar prices.

The Korea Rural Economic Institute forecasted that as sugar prices rise, import prices will also remain at a high level for the time being.

Previously, last year, global wheat prices rose due to the aftermath of the Russia-Ukraine war, and domestic food prices such as ramen, snacks, and bread all increased simultaneously.