Food Prices Set to Soar Amid War, Heatwaves, and Supply Disruptions

Global food prices are expected to rise by 11.8% this year and 4.8% in 2027, due to a combination of factors including extreme heat and droughts in Europe, high energy and fertiliser costs, and conflicts in the Middle East and Ukraine.

The EU-27 and UK grain harvest is forecast to fall by 3.2% this year, with Germany's grain production expected to decrease by 7% due to severe drought and heatwaves.

Oxford Economics attributes the most significant impact on food prices to the US-Iran war, which has disrupted oil and raw-material supplies, leading to a 36% surge in global diesel prices and a forecasted 22% rise in fertiliser costs.