Global food inflation set to rise as war disruptions and El Nino hit supplies
AgenciesMuhamad Yasin, a 63-year-old parking attendant in central Jakarta, says he has cut back on meals as rising prices have put food staples beyond his reach. “I used to be able...
Rising global food prices are set to accelerate, exacerbated by war disruptions and drought caused by El Nino, according to the United Nations Food and Agriculture Organization (FAO). Muhamad Yasin, a Jakarta parking attendant, has noticed the impact on his budget, with essential staples now costing double what they used to. The FAO predicts food inflation will persist into 2027, particularly affecting low- and middle-income countries where food makes up a larger portion of household spending.
In Indonesia, rice prices have soared to record highs due to delayed rains, while Egypt has seen a quarter increase in bread prices and India saw sugar prices hit an all-time high due to the weakest monsoon in over a decade. The FAO Food Price Index reached its highest level since November 2022, and the World Bank reported that food prices outpaced headline inflation in 22 percent of 150 countries analyzed.
Bread prices in Egypt have risen significantly, and vegetable oil in Indonesia has increased by 7 percent, even though the country produces the most palm oil globally. Egypt, the UAE, and India are all experiencing steep price hikes for food staples, with bread, cooking oil, sugar, onions, and pulses all seeing double-digit percentage increases.
The cushion of record global grain inventories is thinning, and the return of importers to the world market could further drive up demand.
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