Global food prices show the biggest rise in a decade
Published Jun 4, 2021
Tridge summary
(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.
Original content
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 any country, ”Abdolreza Abbassian, chief economist at the Food and Agriculture Organization of the United Nations (FAO), said by telephone. "Any of those things could drive prices higher than they are now, and then we might start to worry." Long-lasting increases in commodity prices are moving to store shelves, with ...
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