A 40% growth in the cost of agricultural merchandise creates the threat of rising inflation.
The United Nations keeps monitoring global food prices, including meat, cereals, sugar, and dairy products.
Food costs in May were 4.8 percent higher than in April, according to the FAO food price index. This is the most significant monthly increase since 2011.
What products have seen the largest price increase?
It was noted that sugar and vegetable oils have seen the largest price increase. Also, this year, the cost of corn increased by 42% at once. World prices for this crop have reached a seven-year high.
What’s in the future?
Higher inflation will affect poorer countries. Richer countries, whose raw food costs are only a part of retail pricing, will not be able to escape it too.
Furthermore, economists and analysts predicted that once lockdowns around the world were removed, eating out in cafés and restaurants would add to price rises.
In the next months, the expense of labor, transportation, and shipping will drive prices considerably higher.