Global Food Prices Set to Rise Amid Heatwaves, Wars, and Droughts
Global food prices are expected to rise by 11.8% this year and 4.8% in 2027, according to Oxford Economics. The biggest impact will be on crops, including grains, fruits, vegetables, and dairy products.
The Europe-wide heatwave has damaged crops, while farmers also face high energy and fertiliser prices. The blockade of the Strait of Hormuz due to the Iran war has disrupted oil supplies, causing global diesel prices to surge 36% year on year in July.
Oxford Economics says that the most significant impact on food prices globally stems from the US-Iran war and its impact on inputs for food production. Senior Economist Tomas Dvorak told Euronews Business that the two countries together account for just under 30% of total global wheat exports and above 10% of corn.