‘Perfect storm’ of issues behind record high inflation rate: professor

With the current inflation rate at its highest level in over thirty years, a professor specializing in the food and agricultural sector feels there is a 'perfect storm' of issues leading to the rise.

According to Mike Von Massow, associate professor in the department of food, agriculture and resource economics at the University of Guelph, the factors include various supply chain related issues and the ongoing war in Ukraine.

“There isn't one just one thing causing a rise in food prices, we're seeing a variety of things — supply chain disruptions that arose from COVID, we are seeing extreme weather events and drought in western Canada and the western US that has affected yields and the ability to carry livestock,” Von Massow told The Rob Snow Show on Wednesday, April 20. “We're seeing a war in Ukraine, which is affecting wheat prices.”

However, he feels it's reasonable to expect there will soon be some relief from the record inflation rates.

“That means we won't see continued price increases of the magnitude we've seen over the past year,” Von Massow explained.

He expects there will be some decrease in food prices as the country gets more into seasonal production of goods such as fruits and vegetables. Von Massow adds there is still uncertainty on how the ongoing war in Ukraine will continue to impact inflation.

“Ukraine remains a wild card — how long that goes on and how long there is a disruption in both its production and its exports will have a factor,” he said.

Van Massow also feels optimistic inflation-related pressures won't be as high as they are at the moment, but acknowledges there are still some unknowns that could come into play.

Listen to the full interview with Mike Von Massow on the Rob Snow Show below: