Global Food Prices at Six-Year High Are Set to Keep On Climbing – By Agnieszka de Sousa and Megan Durisin (Bloomberg) / January 7 2021
- UN gauge of food prices has rallied for seven months
- Costs will probably rise further this year, UN economist says
Global food prices reached a six-year high in December and are likely to keep rising into 2021, adding to pressure on household budgets while hunger surges around the world.
A United Nations gauge of food prices has jumped 18% since May, as adverse weather, government measures to safeguard supplies and robust demand helped fuel rallies across agricultural commodities from grains to palm oil. Prices will likely climb further, the UN’s Food & Agriculture Organization said.
The spike threatens to push up broader inflation, making it harder for central banks to provide more stimulus to shore up economies, while stirring memories of food-price crises a decade ago. It’s bad news for consumers whose incomes have been hurt by the Covid-19 crisis, and adds to concerns about global food security that’s being affected by conflicts and weather shocks.
That’s especially true for the poorest countries having to contend with limited social safety nets and purchasing power, according to the FAO.
