Global trade turmoil risks food price shock
Rising fuel prices caused by the instability at the Hormuz and Bab el-Mandeb straits are hitting farmers in parts of the West just as harvest season opens. Restrictions on shipping through key global trade routes are stoking concerns of a coming worldwide food-price shock, with poor countries particularly ill prepared. Rising fuel prices caused by the instability at the Hormuz and Bab el-Mandeb straits are hitting farmers in parts of the West just as harvest season opens. Meanwhile, escalating bombardments by Russia and Ukraine — which together account for a quarter of the global wheat supply — on each other’s shipping infrastructure are piling pressure on food prices. Climate change is compounding the issue, with a UN index of food commodities up 2.5% year-on-year. “ The risk premium is returning to food markets,” the chief economist of the UN’s Food and Agriculture Organization said.
Rising fuel prices caused by the instability at the Hormuz and Bab el-Mandeb straits are hitting farmers in parts of the West just as harvest season opens. Restrictions on shipping through key global trade routes are stoking concerns of a coming worldwide food-price shock, with poor countries particularly ill prepared. Rising fuel prices caused by the instability at the Hormuz and Bab el-Mandeb straits are hitting farmers in parts of the West just as harvest season opens. Meanwhile, escalating bombardments by Russia and Ukraine — which together account for a quarter of the global wheat supply — on each other’s shipping infrastructure are piling pressure on food prices.
5% year-on-year. “ The risk premium is returning to food markets,” the chief economist of the UN’s Food and Agriculture Organization said.