Commodities
Food Prices Set to Rise as Heatwaves and Conflicts Take Toll
Global food prices are expected to rise by 11.8% this year and 4.8% in 2027, according to Oxford Economics.
The forecast is due to several factors, including extreme heatwaves and droughts in Europe, which have damaged crops, high energy and fertiliser costs, as well as the ongoing conflicts in the Middle East and Ukraine.
Oxford Economics' Senior Economist Tomas Dvorak stated that the 'US-Iran war and its impact on inputs for food production, mainly oil (diesel), natural gas and fertiliser,' is the most significant contributor to global food price increases.
The conflict in Ukraine has also had a significant impact on global food prices, as it accounts for just under 30% of total global wheat exports and above 10% of corn.