There is no inflation if you don’t eat…
According to a new United Nations report, global food prices have soared to their highest levels in six years, and they are anticipated to keep rising in 2021.
Since May, the UN’s Food & Agriculture Organization said, international food prices have surged 18 percent, due to roaring demand, weather, and government measures to protect supplies.
This will increase food inflation, impacting those whose incomes have been decimated by the coronavirus pandemic.
Overall, be concerned about global food security, particularly in impoverished nations with limited purchasing power and social safety nets, says the FAO.
“We do at this point see more factors pushing up global food prices,” said Abdolreza Abbassian, a senior economist at the FAO. “Food inflation is a reality. While people have lost income, they are as we speak going through a tremendously difficult hardship.”
Another factor is that China is buying up a lot of the output in the United States and South America, places where inventories are already tighter.
It’s going to be rough out there.
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