Food price inflation and policy responses in Latin America: an assessment of the causes and impacts on local food value chain
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.