Food Price Surge Imminent as Wars, El Nino Bite

The world is on the verge of another food price surge due to a combination of factors including wars in Iran and Ukraine, El Nino weather phenomenon, and global supply chain disruptions.

The chief economist of the United Nations Food and Agriculture Organisation (FAO) warned that higher crude oil prices, loss of fertiliser from the Gulf region, shortage of diesel in some parts of the world, and extreme weather are feeding through to costs.

Maximo Torero told Reuters that 'I expect that commodity prices will start to increase more now... and food prices will start increasing by the end of the year, and next year for sure they will increase more.'

The transmission from commodity to final food price is around three to six months, he said.