Global food prices have soared sharply which is the fasted rising record on a monthly basis over a ten-year period, according to the United Nations.
The UN uses a comprehensive index of global food costs, which have also risen for 12 consecutive months.
Supply chains were affected by disruptions to production, labor and transportation during the COVID Pandemic.
Mounting Inflation
Concerns are mounting about widespread inflation and how high food debt will affect global economic recovery.
The UN Food and Agriculture Organization (FAO) food price index tracks global prices for a range of foods including cereals, oilseeds, dairy products, meat and sugar.
According to the index, food prices in May were 4.8% higher than April – the biggest monthly rise since October 2010 – and 39.7% higher than this time last year (May 2020).
All five components of index rose, are driven by the i creasing cost of the vegetable oils, grain and sugar.
High Demand And Low Supply
That pushed the index to its highest level since September 2011.
The increased costs are the result of renewed demand in other countries and lag in lower production.
Disturbances in the market and supply chain due to travel restrictions have resulted in a lack of stores and high prices.
Experts had warned that high demand and low productivity would lead to inflation as the economy slipped out.
Recovery
However, some industries may see strong recovery. The FAO forecast predicts global grain production this year, which could help reduce price pressure.
Earlier this week, the British Retail Consortium (BRC) warned UK consumers that they could face more expensive bills in stores in the fall as costs rise.
Inflation is the rate at which prices of goods and services increase.
As well as providing an overview of the prices of our stores and services, it affects interest rates and therefore our money is deducted in value therefore our mortgages and is used to set regulated items, such as train tickets.
Most central banks have inflation rates of between 2% and 2.5%.
