Global food prices show the biggest rise in a decade

Published 2021년 6월 3일

Tridge summary

Global food prices have experienced the largest increase in nearly a decade, rising for the 12th month in a row as economies attempt to recover from the COVID-19 crisis. The United Nations gauge of food prices reached its highest level since September 2011, with a 4.8% rise in May, leading to concerns about inflation and depleting global grain reserves. Factors contributing to the increase include drought in Brazil, slowed vegetable oil production in Southeast Asia, and increased demand from China. The situation threatens to worsen inflation and could lead to food shortages and higher prices in stores. The summer weather in the Northern Hemisphere will be critical in determining whether crop yields will make up for shortages in the US and Europe.

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Original content

(Bloomberg) - Global food prices posted the biggest rise in nearly a decade, raising concerns about rising food costs as economies are struggling to emerge from the COVID-19 crisis. 19. A United Nations gauge of global food costs rose in May for the 12th consecutive month, the largest period of increases in a decade. The continued advance runs the risk of accelerating inflation overall, complicating efforts by central banks to offer more stimulus. Drought in Brazil's main producing regions is affecting crops, from corn to coffee, and growth in vegetable oil production has slowed in Southeast Asia. This is increasing costs for livestock producers and risks further depleting global grain reserves, which have been depleted by increased Chinese demand. The situation has sparked memories of 2008 and 2011, when rising food prices caused riots in more than 30 countries. “We have very little room for any production shock. We have very little scope for an unexpected increase in demand in ...

Source: Elperiodicodemexico