As the rate of food price inflation eases in the United States and Europe, analysts are warning of a new era of volatility in global food prices, ushered in by a series of threats coming together in unprecedented ways.
A combination of calamities — extreme weather, Russia’s targeting of grain supplies in Ukraine and some countries’ growing willingness to erect protectionist barriers to food trade — has left food supplies more vulnerable and less prepared to absorb any one disruption, analysts say.
“This is the new normal now, with more volatility and unpredictability, whether that’s in commodity prices or food prices,” said Dennis Voznesenski, a commodities analyst at Rabobank in Sydney, Australia.
Even without major disruptions, food prices can be variable, and many factors play into the price of a bushel of wheat or loaf of bread.
Persons:
—, ”, Dennis Voznesenski
Organizations:
Rabobank
Locations:
United States, Europe, Ukraine, Sydney, Australia