According to a new report global food prices are nearing a new record high as supply chain shortages and inflation continue to drive prices ever higher.
As Yahoo News reports:
(Bloomberg) — Global food costs jumped last month, extending a march toward a record and piling more inflationary pressure on consumers and governments.
A United Nations index tracking staples from wheat to vegetable oils climbed 3% to a fresh decade high in October, threatening even higher grocery bills for households that have already been strained by the pandemic. That could also add to central banks’ inflation worries and risks worsening global hunger that’s at a multiyear high.
Bad weather hit harvests around the world this year, freight costs soared and labor shortages have roiled the food supply chain from farms to supermarkets. An energy crisis has also proved a headache, forcing vegetable greenhouses to go dark and causing a knock-on risk of bigger fertilizer bills for farmers.
“The issue with the inputs and fertilizers and its implications for next year’s crop is a concern,” said Abdolreza Abbassian, a senior economist at the UN’s Food and Agriculture Organization. “By now, the market has factored in most of the supply and demand issues. But the market has by no means factored in next year’s prospects in production.”
October’s numbers were mostly driven higher by grains and vegetable oils.
