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Forex

Food Prices to Rise Again Amid Heat Drought Records

Guavy AI Editorial Team
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EUR
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Food inflation in Europe has remained contained over recent quarters, but leading indicators suggest upward pressures are building. According to ABN AMRO economists, food prices are likely to start rising again towards the end of 2026 and into 2027.

The impact of heat and drought records broken across the EU and US will put upward pressure on European food prices, while the effects of El Niño may be more mixed. Our base case sees food price rises adding 0.5 percentage points to eurozone HICP inflation at its peak by Q3 2027.

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