Global food prices hit a three-year high in July as a combination of war in Ukraine and the Middle East, compounded by extreme weather events, pushed up crop prices.
The United Nations’ index of food-commodity prices rose by 0.6 per cent last month with increases in the cost of cereals, sugar and vegetable oils being partially offset by falling meat and dairy prices.
The report said global wheat prices had surged by 5.8 per cent and were almost 10 per cent higher than 12 months ago.
The report linked the surge to “heightened concerns over continued disruptions to Black Sea export flows and damage to export infrastructure, further compounded by the impact of recent heatwaves on crop yields in several key producing countries”.
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Intensifying Russian and Ukrainian attacks are fuelling fears over supplies from the key Black Sea grain region, helping to push wheat prices to a two-year high in July.
Europe is also headed for one of its steepest grain harvest declines on record as extreme heat scorches crops.
World maize prices also increased, up 3.6 per cent from June, “supported by concerns over hot and dry weather in parts of the Corn Belt in the United States of America and spillover effects from firmer energy markets amid heightened geopolitical tensions”.
Food price inflation has been driving cost-of-living crises in many countries.
Retail specialist Worldpanel put annual grocery price inflation in Ireland at 4.7 per cent in June. It had been above 5 per cent previous to that.
Additional reporting by Bloomberg
