After last year’s rampant food inflation, a drop in prices of goods from wheat to fertilizers is raising hopes for some respite in 2023. But multiple risks remain, writes Bloomberg in its newsletter on food prices.
“Food prices will probably climb this year unless there’s major debt relief and financial support from the international community, the International Food Policy Research Institute warned this week.
Agri-commodities and fertilizers are still historically expensive, while grain stockpiles remain tight just as extreme weather in places like Argentina and East Africa damages crop prospects, according to economists Rob Vos, Joseph Glauber, and David Laborde.
High costs are also hurting farm profits. It all points to a reduced outlook for foodstuffs, even if the Black Sea crop-export deal remains in place, they said.”
““Price instability is likely to intensify with any major supply shock,” they said in a report. That will continue to squeeze vulnerable households around the world, as countries and consumers struggle to afford food without enough help from incomes.”
“Even though world market prices of staples fell in the second half of 2022, that has “at best” slowed domestic food inflation very modestly in most nations, IFPRI said.”
Republished in ProFinance (Russia), For Post (Russia)