7 Nov 2021
Global Food Prices Highest in a Decade
The Index Today
Rising food prices are have a hit a new record in over a decade, crossing 30% in many developed and underdeveloped countries. Supply chain disruptions, factory shortages and political tensions are pushing up prices of basic food items leading them to peak at a record high according to the United Nations Food and Agriculture Organization.
Local governments and human rights groups are issuing new warnings of hunger and malnutrition which could affect large masses of population in countries such as Brazil, India and Philippines. William Jackson at Capital Economics said, “Inflation has been particularly problematic in Latin America where it’s risen much more sharply than in other regions.”
Inflation has been recorded to cross targets set by central banks by as much as three times in some countries. Combined with drought, slow economic growth and covid, the situation has become dire for millions of families who struggle to afford one meal a day.
Food categories including wheat, barley, maize and rice make up at least half of the global nutrition and almost 80% in poor countries. The supply chain disruptions have not only shrank crop output, but also increased prices since 2019.