The world is bracing for a wave of food inflation due to wars and energy prices – Reuters
The world may face a wave of food inflation by the end of the year, and next year, food price increases will accelerate due to the consequences of the wars in Iran and Ukraine, as well as rising energy and fertilizer costs.
This was stated in an interview by Maximo Torero, chief economist of the Food and Agriculture Organization of the United Nations (FAO). According to him, rising oil prices, reduced fertilizer supplies from the Persian Gulf region, a shortage of diesel fuel, and extreme weather events are already increasing costs for farmers.
It takes approximately three to six months for changes in commodity prices to be reflected in final food prices. Maximo Torero expects commodity prices to begin rising more rapidly, with food prices increasing by the end of the year and even more so next year.
The FAO notes that low profitability is forcing farmers in various countries to rethink their crop mix. In particular, in the U.S., some producers are switching from corn to soybeans, which require less fertilizer.
A strong El Niño event will be an additional risk factor, as it could alter rainfall patterns in many regions of the world. In India, the monsoon season is already delayed, which could negatively affect the rice harvest and lead to a further rise in global food prices.
Source: Reuters.
As a reminder, Ukraine’s Acting Minister of Foreign Affairs Andriy Sibiga stated that Russian attacks on civilian vessels in the Black Sea could trigger a sharp rise in global food prices and hit the poorest countries hardest.
In the Black Sea, Russia attacked a foreign merchant ship flying the flag of Antigua and Barbuda. One person was killed, and three others were injured.
