Global Food Prices Set for Sharp Increase Amid War, Heatwaves

Global food prices are expected to rise by 11.8% this year and 4.8% in 2027, according to Oxford Economics' forecast. The heaviest impact will be on cereals, fruits and vegetables, and dairy products.

The forecast comes at a time when extreme heat and drought have damaged crops in Europe, while farmers are facing high energy and fertilizer prices, exacerbated by wars in the Middle East and Ukraine.

Oxford Economics attributes the significant impact on global food prices to the US-Iran war and its effects on food production inputs, mainly oil (petroleum), natural gas, and fertilizers.