Global food prices remain at record levels as Russia’s invasion of Ukraine continues to disrupt
trade flows and inflation worsens a worldwide cost-of-living crisis, according to the United
Nations (UN).
Russia’s invasion of Ukraine has sharply reduced commodity exports from that country, one of
the world’s biggest grain and vegetable producers. The blockade of key Black Sea ports has
exacerbated supply-chain turmoil, sending prices soaring and prompting the UN to warn that
food shortages may spur millions of people to migrate.
A UN gauge of global food costs fell 0.6% in May from the previous month. Vegetable oil prices
declined 3.5%, partly due to the removal of Indonesia’s export ban on palm oil, the UN’s Food
and Agriculture Organization said.
However, farmers are facing record high energy and input costs, and the UN has said a lack of
fertilizer could deepen the food crisis in 2023. Food prices were already high due to logistics
snarls and a rebound in demand after the pandemic.
Food inflation is hitting hardest in poor countries where groceries make up a large share of
consumer budgets.
The UN food price index soared 13 per cent in March, its fastest pace on record, immediately
after Russia’s attack, before declining slightly in April as demand for vegetable oil fell and corn
prices weakened.
Vegetable oil and grain prices have been further elevated this year by protectionist measures as
countries have sought to protect their own markets. Malaysia has banned chicken exports, while
India has moved to curb wheat and sugar exports.
