Economy

The hidden costs of feeding the world

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The hidden costs of feeding the world

Kathleen Merrigan finds that the true cost of food is far higher than what consumers pay at the checkout counter, taking into account economic, environmental, social, and health impacts. The United Nations Food and Agriculture Organization’s 2023 report using true cost accounting reveals that the global cost of the agrifood system in 2020 was up to US.7 trillion more than retail prices, about 10% of global GDP or per person per day worldwide. Hidden costs in wealthy countries are mainly due to unhealthy dietary patterns, while in low-income countries, they stem from poverty and undernourishment. Environmental costs, including nitrogen runoff and greenhouse gas emissions, represent about 20% of the global hidden costs. True cost accounting could guide policy changes, potentially reallocating 0 billion in agricultural subsidies worldwide to support more sustainable and equitable food production methods.

Greek parliament approves private foreign universities, bucking protests [PHOTOS]

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Greek parliament approves private foreign universities, bucking protests [PHOTOS]

Greece’s parliament passed a bill allowing foreign private universities to establish branches in the country, approved by 159 lawmakers in the 300-seat parliament. Prime Minister Kyriakos Mitsotakis stated the legislation aims to reduce the number of Greek students studying abroad and align Greece with the rest of the European Union by boosting competition in higher education. The bill has faced weeks of student protests, with concerns over the devaluation of public university degrees and job prospects. Additionally, the government’s reform agenda includes a same-sex marriage law passed last month. Greece allocates 3%-4% of its GDP to education, below the EU average, but the bill includes provisions for increased funding for state universities.

Sterling is on the move

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Sterling is on the move

The British Pound is experiencing its strongest performance against the US dollar and other major currencies in over seven months. This change is attributed to investors and traders adjusting to a new perspective on the UK’s economy, which has shown resilience despite challenges such as Brexit and geopolitical tensions. Initially, there was an expectation of four interest rate cuts by the Bank of England to address the cost of living crisis and prevent a deep recession. However, current expectations have shifted to potentially only two interest rate cuts this year, based on economic data indicating better-than-expected GDP growth and consumer spending. Additionally, comments from the Fed Chairman have led traders to believe that the Federal Reserve might implement more interest rate cuts than the Bank of England, further influencing the strength of the British Pound.

Greek parliament approves private foreign universities, bucking protests

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Greek parliament approves private foreign universities, bucking protests

Greece’s parliament approved a bill allowing foreign private universities to establish branches in the country, despite student protests. The legislation passed with 159 votes in the 300-seat parliament. Prime Minister Kyriakos Mitsotakis argued that the move would counter the trend of Greek students studying abroad and align Greece with European Union standards, enhancing competition in higher education. The bill is part of broader government reforms, including a recent same-sex marriage law. It also promises increased funding for state universities. Protests against the bill included a significant rally outside parliament, with some incidents of violence reported.

In State of the Union, Biden to sharpen contrast with Trump

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In State of the Union, Biden to sharpen contrast with Trump

U.S. President Joe Biden will use his fourth State of the Union address to highlight differences between him and Donald Trump, discuss the strong economy, advocate for higher taxes on the wealthy, and address concerns about his age. The address is part of a constitutional requirement for the president to report to Congress on the state of the union. It will take place at 9 p.m. (1400 GMT) before a joint session of the House of Representatives and the Senate, and will be nationally televised. Polls show Biden and Trump closely tied in battleground states, with most U.S. voters not enthusiastic about a rematch. Biden aims to convince voters of his efforts to protect democracy, abortion rights, and reduce costs. He will propose tax reforms targeting wealthy Americans and large corporations, support for unions, and highlight legislative successes. Biden will also emphasize U.S. leadership globally, including support for Ukraine and Israel, and push for a billion aid package. House Speaker Mike Johnson criticized Biden’s impact on the U.S. economy and reputation. The economy is performing well, but Republican voters are dissatisfied, according to polls. Biden’s campaign plans to criticize Trump on various issues. The NAACP has released a policy agenda for Biden’s address, focusing on voting rights and criminal justice reform. Concerns about Biden’s fitness for a second term due to his age will be scrutinized during his speech. White House press secretary Karine Jean-Pierre mentioned Biden’s accomplishments and his work on the speech at Camp David.

EU countries to exit energy treaty over climate concerns, officials say

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EU countries to exit energy treaty over climate concerns, officials say

European Union countries decided to leave the 1998 Energy Charter Treaty due to concerns it conflicts with climate change efforts. The treaty allows energy companies to sue governments over policies affecting their investments, which has been used to challenge the shutdown of fossil fuel plants. The decision was made at a meeting in Brussels and will next seek approval from the European Parliament, where consent is highly likely. The move follows initial proposals and pressure from several EU member states. Despite some countries’ reluctance and concerns over wasting modernization efforts, an agreement was reached to accept treaty reforms before exiting. These reforms, agreed by around 50 signatories, include reducing the protection period for energy firms’ investments from 20 to 10 years.

Food prices surging uncontrollably, as vegetables see 26.5% monthly rise

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Food prices surging uncontrollably, as vegetables see 26.5% monthly rise

– In February, the price of fresh vegetables increased by 26.5% compared to January, according to the Cyprus Consumers’ Association.
– The general price of vegetables rose by 15.7% during the same period.
– The price of potatoes increased by 6.81%.
– Fresh fruits experienced a price increase of 3.78%.
– Meat preparations saw a price increase of 7.64%.
– Chocolate prices went up by 6.97%.
– Men’s clothing and footwear prices increased by 6.06%.
– Cutlery and silverware prices decreased by 6.52%.
– Edible oils other than olive oil saw a price reduction of 4.55%.
– The price of electricity fell by 2.1% compared to January 2024.
– Year-on-year, olive oil prices rose by 54.34%.
– Fresh vegetables and fresh fruits prices increased by 26.55% and 23.36% respectively, year-on-year.
– Prices of edible oils other than olive oil decreased by 18.55% compared to last year.
– Sugar prices fell by 13.06% year-on-year.
– Footwear for infants and children prices decreased by 8.25%.
– Liquid fuels prices dropped by 8.03% year-on-year.
– The comparison was made against January 2023.

Cyprus inflation up 1.8% in February

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Cyprus inflation up 1.8% in February

The monthly Cyprus consumer price index (CPI) increased by 1.03 points to 114.93 in February, from 113.90 in January. The inflation rate rose by 1.8% from February last year. The CPI rate was up 0.9% from January and 1.75% higher for January-February compared to the same period last year. The largest change from February 2023 was in services (+3.7%), with the largest monthly change in agricultural goods (+5.6%) and the largest change compared to February 2023 in restaurants and hotels (+6.2%). The largest changes from January in the CPI for February were in clothing and footwear (+3.1%) and in food and non-alcoholic beverages (+2.7%). For January–February, compared to the same period last year, the largest changes were in restaurants and hotels (5.9%) and miscellaneous goods and services (3.7%). Year-on-year, February saw the biggest increases in restaurants and hotels (0.62) and food and non-alcoholic beverages (0.43). Catering services (0.60) had the most notable effect on the change of the February CPI compared to the same month last year, while the price of fresh vegetables (0.38) had the largest effect on the change of the February CPI compared to January this year. The CPI calculation includes a weight distribution for the four districts: Nicosia 42%, Limassol 30%, Larnaca 18%, and Paphos 10%. Prices of 805 goods and services are recorded monthly, except for some seasonal products, meat, and fuels, whose prices are collected weekly.

Turkey inflation rises to 67%, keeping pressure on cenbank

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Turkey inflation rises to 67%, keeping pressure on cenbank

Turkey’s annual inflation rate increased to 67.07% in February, with significant price rises in food, hotels, and education. Finance Minister Mehmet Simsek indicated inflation would remain high in the near term due to base effects and the delayed impact of rate hikes but expected it to decrease over the next 12 months. The central bank has raised interest rates by 3,650 basis points since June, reaching a 45% policy rate, which it deems sufficient to reduce inflation. However, economists suggest further tightening may be necessary due to continued price pressure and strong domestic demand. Monthly consumer price inflation was 4.53%, down from 6.70% in January but above expectations. The Turkish lira has weakened by 6% this year after a nearly 37% decline in 2023, affecting import prices. Price increases were most notable in restaurants and hotels at 94.5%, education at 91.8%, and food and non-alcoholic drinks at 71.1%. The central bank aims to maintain tight monetary policy to achieve its 36% year-end inflation target, while the domestic producer price index rose by 3.74% month-on-month in February for an annual increase of 47.29%.

EAC board to decide on electricity bill increase

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EAC board to decide on electricity bill increase

The Board of Directors of EAC will soon decide on a potential 6% increase in electricity bills. George Petrou, the Chairman of the Board of Directors, announced that a decision is expected within the next few days. EAC plans to install two machines at the Dekelia electricity generating station, with the purchase cost estimated at €80 million, which could rise to €110 million to €120 million with the operation of storage space. Petrou highlighted the significant challenges EAC faces, particularly with the green and energy transition, describing the current period as the “electric decade.” He emphasized that EAC has evolved into an organization that is operationally and financially independent, committed to modernizing the electricity system through investments and infrastructure. EAC aims to improve its production, transmission, distribution, and supply activities, as well as its non-regulated activities and maintenance programs, to enhance the Cyprus electricity system and customer service.