Food Prices Set to Soar as Wars and El Niño Combine

The global food market is facing a new wave of rising prices due to a combination of factors. According to Maxim Torero, chief economist at the United Nations Food and Agriculture Organization (FAO), wars in Iran and Ukraine, along with the El Niño climate phenomenon, are creating a perfect storm that is driving up production costs and reducing crop yields.

The FAO has warned that this situation could soon change, as rising crude oil prices, reduced availability of fertilizers from the Persian Gulf countries, diesel shortages in some parts of the world, and extreme weather conditions are increasing production costs. This will ultimately affect food prices, which have remained stable so far this year.

Torero expects raw material prices to continue rising, with food prices likely to surge by the end of the year. He also predicts that next year's growth in food prices will be even more pronounced.