Volume 125 - Issue 2

Food prices in the EU have risen dramatically in 2022 and the first half of 2023. The drivers of this increase originated in energy cost increases, aggravated by the effects of drought and animal disease outbreaks, but high global market prices in part due to the Russian invasion of Ukraine after February 2022 also helped to pull food prices higher and may have facilitated some element of profit-led inflation. Households have responded by buying less and trading down, with an increasing number turning to food banks to help make ends meet. Some limited steps were taken at EU level to help protect consumers from the effects of higher prices, but the important interventions have been at Member State level. These measures have primarily been focused on energy prices, but several Member States in addition directly tackled food price inflation either by lowering VAT rates on food products, by introducing temporary price controls on a basket of basic food products, or by providing food vouchers. Given the lags in price transmission along the food chain, food prices are likely to remain high for several more months. Lower energy and commodity prices, together with higher interest rates, should be reflected in lower...

The COVID-19 pandemic has had serious implications for food security around the world. The Russian-Ukrainian military conflict led to another surge in food prices. Central Asia, despite its diverse levels of economic development, has undoubtedly experienced a tangible shock from the food crisis of recent years. Food inflation in the region has many aspects to it. It was initially determined by global food price trends and the depreciation of national currencies during the pandemic period. Several national factors affected the local food situation: a series of adverse weather conditions, the different fiscal consequences of pandemic, and national strategic policies in support of agri-food exports. The countries of the region used all regulatory measures to protect their markets - export restrictions and export quotas, import subsidies and VAT zeroing, as well as subsidies for production and support to consumers. The forecasts for food prices in the region in 2023/2024 are not optimistic: prices will remain relatively high, and future changes largely depend on the still volatile geopolitical situation. The impact of COVID-19 may have long-term consequences for Central Asia. Over the coming 10-20 years, the development of agriculture in the region will be dictated by the need to address the growing...

Food price inflation has raised concerns about food insecurity and systemic crises in East and Southeast Asia, given the region’s population size, economic significance, and role in the international food market. COVID-19 repercussions, extreme climate- and weather-induced events, anthropogenic stressors such as global economic softness and the Russia-Ukraine war, and many other uncertainties enlarged the supply-demand imbalance of food. Those factors are not likely to ease in the short term and in the meantime, potentially new food crises are simmering in East and Southeast Asia. Meanwhile, China’s reopening and deepened intraregional integration have allowed the region’s food price situation to be less grim than elsewhere. This article conducts a political-economic analysis in order to identify the major forces driving recent food price inflation in the region as well as to explore what proactive measures can build greater food system resilience during the post-COVID-19 recovery. This article recommends that ountries refrain from imposing further export restrictions (whatever their form), and instead deepen dialogues and cooperation in order to facilitate food system resilience against the looming risks, such as El Niño.

Food prices in Africa respond in familiar ways to changes in the global environment, but there are a number of unique characteristics that have to be accounted for in understanding how these prices play out in domestic markets. African countries are price takers in global agricultural commodity markets, and face high farm gate to consumer costs, which are a major driver of food price inflation. Furthermore, the uncertainty that accompanies poor policy formulation and implementation distorts markets and results in the skewing of investment to mitigate the negative impacts of policy uncertainty rather than to build future opportunities. Finally, the high levels of poverty as well as of inequality distort consumer markets, which are fragmented by these extremes, and which compete with informal markets and with own consumption. In this paper, we address the role that these factors play in understanding trends in food prices across a spectrum of commodities in Ghana, Kenya, South Africa and Zambia. These characteristics make it difficult to find relevant and timely data to help understand what is really going on in the real world.

Food inflation in North America reached its peak in 2022, mainly driven by two factors: COVID-19 and Russia’s invasion of Ukraine. COVID-19 disrupted the global supply chain, and triggered labour shortages; consequently, governments in all three North American countries adopted fiscal and monetary policies to offset the impact of the pandemic, mostly by providing direct assistance to businesses and households and by lowering interest rates. The invasion of Ukraine, a major exporter of grain and vegetable oil, increased commodity prices and contributed to higher food prices. Overall, food inflation in the U.S. varies according to both sector and timeframe. In response to the Russian invasion, cereal product prices in the U.S. have increased, whereas meat prices spiked during the COVID-19 pandemic. This study focuses on determining the key factors that have led to higher food inflation in North America, and more specifically the United States. We have found that the unemployment rate, an index of global supply chain pressures, and COVID-19 related aid have directly contributed to U.S. food inflation. Projections from several organisations suggest food inflation will decline in 2023 and 2024.

This exploratory article focuses on the factors influencing recent food price inflation in Latin America. The onset of the pandemic has significantly heightened concerns regarding food price inflation. Quarantines, mobility restrictions, and uncertainty all occurring in quick succession have led to substantial disruptions in both local and global value chains. Furthermore, the Ukraine-Russia conflict has exacerbated the existing inflationary situation, introducing additional interruptions and disturbances to agribusiness value chains. Drawing upon empirical research, this article examines the impact of the SARS-CoV-2 pandemic and the subsequent Ukraine-Russia conflict on food price inflation in Latin America. It also assesses the policy measures implemented by countries and provides future projections in this regard. Regional food inflation processes have prompted concerns regarding the vulnerability of food security and the weakness of supply chains in the region. It is crucial to consider the relationship between these processes and the overall price level of the economy. The evidence indicates that food prices have experienced more pronounced increases compared to the rest of the economy, suggesting a surge in prices relative to other consumer goods. This has directly impacted agricultural producers and end consumers of food.