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[INTERNATIONAL] · Egypt, Indonesia, India, United Arab Emirates, Greece · 21 sources

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Global food inflation projected to accelerate through 2027

Global food inflation is expected to accelerate in the coming months and persist through 2027, driven by a combination of geopolitical conflicts, extreme weather, and logistical bottlenecks. According to the Food and Agriculture Organization (FAO), the Food Price Index averaged 136 points in September, marking its highest level since November 2022.

Supply disruptions are a primary driver. Attacks on Black Sea grain infrastructure and insecurity in the Red Sea have forced vessels onto longer, more expensive routes, with some freight costs increasing by approximately 50%. Additionally, tensions in the Strait of Hormuz have impacted fuel costs and fertilizer exports.

Climate phenomena, specifically El Niño, are causing droughts that threaten agricultural production. In India, the weakest monsoon in over a decade has pushed sugar, onion, and pulse prices up by more than 10% in September, with sugar hitting record highs. In Indonesia, rice prices have reached record levels due to delayed rains. Other notable increases include a 25% rise in bread prices in Egypt and a nearly 40% increase in cooking oil prices in the United Arab Emirates.

The World Bank reports that food prices outpaced headline inflation in 22% of 150 analyzed countries during the September quarter. Experts warn that low- and middle-income households in Asia, the Middle East, and North Africa will be most severely affected as food constitutes a larger share of their spending.

Entities

Black Sea · Egypt · El Niño · Food and Agriculture Organization of the United Nations · Indonesia · Máximo Torero · Reuters · World Bank

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Sources

Wheat flour price increased by Rs. 13 [english.gossiplankanews.com]